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

Show the answer and explanation

Answer: C. The AI must still get them until he asks in writing; the retail customer cannot opt out at all

Regulation 40(4) to (6): the exemption applies where the customer is an AI, EI, II or related corporation and either has agreed to real-time electronic statements or has requested in writing not to receive monthly statements. A verbal request is insufficient, and retail customers cannot opt out.

Common mistake

Written request, and only for AI, EI, II 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.