Free Sample Question
Asset Management

Which ONE of the following is excluded from the SFO definition of asset management?

A
Securities contract management
B
Futures contract management
C
Activities wholly incidental to securities dealing
D
Real estate investment scheme management
Subscription Money

What is the responsibility of a licensed asset manager on receiving fund subscription money?

A
Return monies to the client if held for more than two business days
B
Deposit monies in a segregated account if held for more than two business days after receipt
C
Fund subscription money is exempt from Client Money Rules
D
Deposit monies into the licensed asset manager’s house account until the money has to be transferred into the fund
Measuring Spread Limits

Bigco is an asset manager with a fund focused on the technology sector.  It has created an overseas subsidiary, Abroadco, to ease its entry into foreign technology markets.  As per the Code on Unit Trusts and Mutual Funds, how would limits on the spread of investments be calculated?

A
Abroadco’s investments would only be considered if it is incorporated in a recognized jurisdiction
B
Bigco and Abroadco’s investments must be added together to decide whether they exceed the relevant holding limits
C
Only Abroadco’s investments should be considered
D
Bigco and Abroadco’s investments must be separately assessed to determine whether they exceed the relevant holding limits