Q4 was: Are Schmidt’s actions and procedures related to changing the allocation of DeShawn Jackson’s portfolio and notifying his client about the change, in compliance with the Asset Manager Code of Professional Conduct?
I didn’t see anywhere in the paragraph specific to the question that he notified the client about the change in AA - were we to infer/assume that the client would be notified in the “normal course of reporting,” even though no notification was mentioned, either specific to the change Schmidt made or in normal quarterly reporting?
Initially he was invested in basic materials sector and he decided to rotate to consumer staples. The key is that he did not breach his mandate (invest in US stocks) and hence did not have to report anything to the client.
It’s a tricky question where you’d think he definitely violated something, but not those listed in the answer choices. He violated Diligence and Reasonable Basis as he changed allocation due to being “nervous” about basic materials.
I thought the video explanations in that portal were quite detailed. Did you check them?
I’m not even seeing the explanation for the PM, only see the correct answers…Where do you find the videos? I only bought the Live Mock not the whole study package…Is that the reason?
… read the very last sentence on page 5 the client was pissed when he noticed the manager’s change in investments on his normal quarterly statement. this is 100% ok with AMC, not a violation, although it is recommended to notify the client of changes sooner, at the very latest it can be the normal course of statements.
you have to submit your answers into the website and then click into each individual question and it will give the explanation and video attached…