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All of the following statements pertaining to investment advisers (IAs) possessing the funds of clients are TRUE EXCEPT:[A] Possession of funds by a custodian that meets certain qualifications is acceptable.[B] At least annually, clients must receive a statement which includes details related to the funds possessed by the firm.[C] Accounts that contain the funds of clients must be specific to that purpose.[D] Immediate notification must be given to the client as to where the firm will maintain the client funds.

1 Answer

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Answer:

The correct option is B

Step-by-step explanation:

Options A, C and D are true except for option B which talks about annual statements. As long as the customer continues to carry out certain activities on his or her account, it is mandatory for statements to be sent on a monthly basis. However, in a case where there is no activity for a long period, then statement are sent to the customer once in three months.

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