Laws & RegulationsPregunta 34 de 100
An adviser engages in an agency cross transaction, arranging a trade between two of its advisory clients. To do this properly, the adviser generally must:
a.Never disclose the arrangement
b.Charge a performance fee
c.Guarantee both clients a profit
d.Obtain client consent, disclose its role and any compensation, and not recommend the transaction to both sides
Explicación
Agency cross transactions require written client consent, disclosure of the adviser's role and compensation, and the adviser generally may not have recommended the trade to both parties. These safeguards address the conflict of representing both sides. Annual statements of cross transactions are also required.
Referencia Legal: Investment Advisers Act of 1940Practica las 100 preguntas gratis — sin registro.
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