Globe Asset Management is a national firm with a couple of hundred offices, often in small and remote towns. As a result of this, many of the smaller offices follow their own compliance procedures designed to provide them with greater flexibility. One policy that is followed by all offices is that records are maintained for a minimum of five years although some offices hold their records in hard copy whilst others hold them in electronic form. All offices have established a continuity plan although, thankfully, these have never been put to the test. Different offices use different methods to communicate with their clients as head office believes local autonomy in these matters is best. In connection with the above which of the following is not a breach of the Code? A. Compliance procedures B. Maintainance of records C. Continuity plans D. Client communication
Would select C
C. I would assume they have to test the plans. Thanks for posting these CFASniper.
C. I would assume they have to test the plans. Thanks for posting these CFASniper.
D
I would choose D too
“the test” is different from “a test”. “the test” means an actual disaster , not a simulated one, i.e. not a test at all “a test” means a test where there is no real disaster , but we go thru a drill as tho there is one,i.e. it is a test so D.
A?
B because records have to be maintained for 6 years not 5 D is not the right answer given Volume 1 Page 280 first paragraph: “Managers must determine how best to establish lines of communication that fit their circumstances and that enable clients to evaluate financial status” AMC does not say all managers must follow the same methods of communication
janakisri Wrote: ------------------------------------------------------- > B because records have to be maintained for 6 > years not 5 > > D is not the right answer given Volume 1 Page 280 > first paragraph: > > “Managers must determine how best to establish > lines of communication that fit their > circumstances and that enable clients to evaluate > financial status” > > AMC does not say all managers must follow the same > methods of communication question asks what IS NOT a breach and it is 7 years right?
Sorry you are right , I got RTFQ’d. It is not 7 years , it is 6 years according to AMC .
I would go for D.
C
It should be “C”.
janakisri Wrote: ------------------------------------------------------- > Sorry you are right , I got RTFQ’d. > > It is not 7 years , it is 6 years according to AMC > . 7 in erata, 6 in text, you can choose. it seems this will not be tested 
If the errata says 7, it is 7. Forget about the 6.
Correct Answer: D A firm should have a set of firm-wide compliance procedures and not leave it to individual offices to write their own. Although records can be maintained electronically or in hard copy they should be kept for at least seven years. Continuity plans should be tested on a firm wide basis. Contact with clients can be by any method as long as it is appropriate.
red bull
Good Q – one question, four birds.