CMFAS RES 1A Licensing & Business Operations question: writes in asking

CMFAS RES 1ALicensing & Business Operations

An accredited investor tells his dealer over the phone that he does not want monthly statements. Separately, a retail customer writes in asking not to receive them. Which statement is correct?

A Neither customer needs to be sent monthly statements, since both have clearly asked not to receive them
B The accredited investor still gets them until he asks in writing; the retail customer cannot opt out
C Only the retail customer may opt out, because accredited investors must always receive statements
D Both may opt out verbally, as long as the dealer records the request in the customer's file

Show the answer and explanation

Answer: B. The accredited investor still gets them until he asks in writing; the retail customer cannot opt out

Regulation 40(1A)(b) of the SFR(LCB): the opt-out from monthly statements is available only where the customer is an accredited, expert or institutional investor or a related corporation of the holder, and either has consented to receiving the particulars as real-time electronic records or has asked in writing not to receive monthly statements. A verbal request is not enough, and retail customers cannot opt out.

Common mistake

Written request, and only for accredited, expert or institutional investors or related corporations.

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Original study material mapped to the public CMFAS RES 1A syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.