🔥 Daily ChallengeCIREOverview of Canadian securities regulatory frameworkMedium
A Portfolio Manager (PM) at an Investment Dealer is supervising an Associate Portfolio Manager (APM). According to IDPC Rule 3971, what is the requirement regarding investment advice provided by the APM to a managed account client?
2 attempts · 0% correct
The advice must be reviewed by the PM within 24 hours of being provided to the client.
The advice only requires PM approval if it involves a trade exceeding 5% of the account's total value.
The APM may provide advice independently as long as they have at least two years of industry experience.
The advice must be approved by the PM prior to the advice being provided to the client.Correct
Why
Correct. Rule 3971(3) explicitly prohibits an APM from providing advice unless it has been approved by a PM prior to being provided.
