CII J10 Practice Questions - Discretionary Investment Management (J10) Exam

Access More Questions

A discretionary portfolio manager notices that a retail client's portfolio value drops by 10% compared to the benchmark report at the beginning of the reporting period. Under FCA rules (COBS 16A.4.2R), what action must the manager take?

Liquidate all holdings immediately to cash. Notify the client in writing no later than the end of the business day on which the threshold is exceeded (or the following business day if exceeded on a non-working day). Suspend the discretionary mandate and wait 30 days. No action is required as long as the annual return remains positive.

Correct Answer:

Notify the client in writing no later than the end of the business day on which the threshold is exceeded (or the following business day if exceeded on a non-working day).

Access more questions from this quiz

Continue to CII J10 Practice Questions - Discretionary Investment Management (J10) Exam for more practice questions and the full quiz experience.

Access More Questions