Mutual Funds and Retirement Plans Flashcards
1
Q
Owning mutual funds are not an independence issue if…
A
Members own 5% or less of a diversified funds (focuses on a large # of funds)
2
Q
Owning mutual funds is an independence issue if…
A
Members own more than 5% an undiversified funds (focuses on a small # of funds)
3
Q
When covered members or immediate family self-directs, supervise or participate in investment decisions….
A
…it’s a direct financial interest that impairs independence even if they are immaterial
4
Q
When investing always think…
A
Do I have a part in the investment decision, a direct or even small amount of interest will impair independence
