CMFAS M8 Types of CIS & Fund Structures question: characteristic of a RETAIL scheme offered to the general public

CMFAS M8Types of CIS & Fund Structures

Which requirement is characteristic of a RETAIL scheme offered to the general public?

A It may be offered only to accredited and institutional investors, not to the public
B It faces the fullest protection, including a prospectus and investment and borrowing limits
C It is exempt from the prospectus and other disclosure standards designed for ordinary investors
D It may be marketed only privately, never through public advertisements or distributors

Show the answer and explanation

Answer: B. It faces the fullest protection, including a prospectus and investment and borrowing limits

Retail schemes are offered to the general public and face the fullest investor-protection requirements: a public offering document (prospectus), investment and borrowing limits, and disclosure standards for ordinary investors.

Common mistake

Confusing retail's fuller protection with the lighter, restricted-scheme regime.

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CMFAS M8 Types of CIS & Fund Structures question: characteristic of a RETAIL scheme offered to the general public

Answer: B. It faces the fullest protection, including a prospectus and investment and borrowing limits

Common mistake

Related CMFAS M8 questions

CMFAS M8 Types of CIS & Fund Structures question: characteristic of a RETAIL scheme offered to the general public

Answer: B. It faces the fullest protection, including a prospectus and investment and borrowing limits

Common mistake

Related CMFAS M8 questions