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Professional responsibility
Managed accounts, like mutual funds, are created
and offered by
brokerage
firms,
investment management companies, and other
financial services companies. They are governed by Rule 3a-4 of
the Investment Company Act of 1940, which requires that: |
| Your account, and that of every
other client, must be managed based on your financial situation
and investment objectives, and in accordance with any reasonable
restrictions you impose. |
| Your financial adviser must obtain
enough information from you to be able to provide individualized
investment advice. |
| The financial adviser and the
portfolio manager must be reasonably available to consult
with you. |
| You must be provided with a quarterly
account statement containing a description of all activity
in your account. |
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In other words, to fulfill their obligations
under the Act, your financial adviser and investment manager must
collaborate with each other and be responsive to you. |
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