Question

What is the requirement for the relationship between the fund sponsor, trustees, custodian, and Asset Management Company in a mutual fund?

a.

They should have a close relationship

b.

They should have an arm's length relationship

c.

They should be direct business partners

d.

They should be family members

Posted under IC 89 Management Accounting

Answer: (b).They should have an arm's length relationship Explanation:An arm's length relationship is required between the fund sponsor, trustees, custodian, and Asset Management Company in a mutual fund.

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Q. What is the requirement for the relationship between the fund sponsor, trustees, custodian, and Asset Management Company in a mutual fund?
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