Investment Manager's Client Brokerage | Purchase Goods or Services | CFA Level 1 Exam

Investment Manager's Client Brokerage

Prev Question Next Question

Question

When an investment manager's client instructs the manager to use the client's brokerage to purchase goods or services for the client, this is known as:

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E. F.

C

When an investment manager's client instructs the manager to use the client's brokerage to purchase goods or services for the client, this is known as directed brokerage. Because brokerage is an asset of the client and the brokerage is used to benefit that client, not the manager, such practice does not violate fiduciary duty.

Prev Question Next Question