Acting with reasonable care in relation to clients:

is required by the adviser as long as it is included in the formal contract between the client and the adviser

would require the same level of consideration by the adviser as they would take in relation to their own investments

can be seen as a substitute for a members legal or regulatory obligations

none of the specific options provided are correct

Acting with reasonable care in relation to clients:

is required by the adviser as long as it is included in the formal contract between the client and the adviser

would require the same level of consideration by the adviser as they would take in relation to their own investments

can be seen as a substitute for a members legal or regulatory obligations

none of the specific options provided are correct

Some CFA members have employment positions where they are responsible for managing a specific investment fund which is designed to track the investment performance of an index or sector of the investment market in accordance with its mandate.

In these situations the responsibilities of the member:

include being personally responsible for any losses generated by the funds investments as this is consistent with the role of the member as a fiduciary.

should be focused on investing the fund assets in a manner consistent with the stated mandate

extend to being responsible for determining the investment suitability of the fund for those investors who may be purchasing shares in the fund

include being personally responsible for the first 10% any losses generated by the funds investments as this is the maximum that elderly investors could afford to lose without adversely affecting their lifestyle