In those cases in which the personal financial planner isn't acting as the investment manager,the planner should review the IPS to ensure it is properly integrated with the client's:
A)Investment plan.This is the responsibility of the investment manager.
B)Personal financial plan.
C)Risk management plan.This is part of the personal financial plan.
D)Tax plan.This is part of the personal financial plan.

Question

Quizplus · Accepted Answer

The IPS outlines the investment objectives and strategies, and it needs to be properly integrated with the client's overall personal financial plan, which includes goals, risk tolerance, tax considerations, and estate planning. While the investment manager is responsible for implementing the IPS, the personal financial planner should review it to ensure it aligns with the client's holistic financial picture. Option A isn't the best choice as it suggests that the personal financial planner is acting as an investment manager, which the question statement negates. Option C and D are partly correct, but they only represent components of the personal financial plan, whereas option B captures the full scope of the planner's responsibility in the given scenario.

In Those Cases in Which the Personal Financial Planner Isn't