For the above constraint, are we suppose to state the legal/regulatory rule that governs even if not given in the question? Example: Pension fund, ERISA etc.
Yes, you are expected to know the common legal requirements (e.g., ERISA) that face particular types of institutional investors.
isnt this more of a country specific law? If not stated as part of the question we would be assuming more than what the question is asking for. (Ie. the person lives in the US. The above law is the only law that applies to pension funds etc…). It should be given in the question. Anyone else want to give this their 2 cents?