Elag for Re Thiago is a member of his employer's deferred profit sharing plan (DPSP). For the last 5 years, his employer has consistently made contributions. However, recent business initiatives have caused an increase in spending but not profits. For the first time in years, the company has underperformed in terms of revenue and profit. What may happen to his DPSP? If the employer fails to contribute this year, then the employer will have to catch up in future years. O The savings that have accumulated within Thiago's plan will continue to grow tax-sheltered. O The employer is required to continue to make contributions every year even if it has an unprofitable year. Thiago will suspend making a matching contribution if his employer fails to contribute on his behalf. Recording Whiteboard Flag for Re Manuel is a Dealing Representative for Commonwealth Financial Inc., a mutual fund dealer. His dealer represents many different mutual fund families available, including their own: CF Group of Funds. He is considering recommending a CF equity fund to one of his clients, Stefania. While describing details about the fund, he informs her that accounts are set-up in nominee name, and that their mutual funds are not transferable. In addition, the fund does pay trailer fees. What type of information has Manuel described about his potential investment recommendation? The material conflict of interest O Features of a locked-in plan O Excessive trading A Letter of Engagement k

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Elag for Re
Thiago is a member of his employer's deferred profit sharing plan (DPSP). For the last 5 years, his employer has consistently made
contributions. However, recent business initiatives have caused an increase in spending but not profits. For the first time in years, the
company has underperformed in terms of revenue and profit.
What may happen to his DPSP?
If the employer fails to contribute this year, then the employer will have to catch up in future years.
O The savings that have accumulated within Thiago's plan will continue to grow tax-sheltered.
O The employer is required to continue to make contributions every year even if it has an unprofitable year.
Thiago will suspend making a matching contribution if his employer fails to contribute on his behalf.
Transcribed Image Text:Elag for Re Thiago is a member of his employer's deferred profit sharing plan (DPSP). For the last 5 years, his employer has consistently made contributions. However, recent business initiatives have caused an increase in spending but not profits. For the first time in years, the company has underperformed in terms of revenue and profit. What may happen to his DPSP? If the employer fails to contribute this year, then the employer will have to catch up in future years. O The savings that have accumulated within Thiago's plan will continue to grow tax-sheltered. O The employer is required to continue to make contributions every year even if it has an unprofitable year. Thiago will suspend making a matching contribution if his employer fails to contribute on his behalf.
Recording
Whiteboard
Flag for Re
Manuel is a Dealing Representative for Commonwealth Financial Inc., a mutual fund dealer. His dealer represents many different mutual
fund families available, including their own: CF Group of Funds. He is considering recommending a CF equity fund to one of his clients,
Stefania. While describing details about the fund, he informs her that accounts are set-up in nominee name, and that their mutual funds
are not transferable. In addition, the fund does pay trailer fees.
What type of information has Manuel described about his potential investment recommendation?
The material conflict of interest
O Features of a locked-in plan
O Excessive trading
A Letter of Engagement
k
Transcribed Image Text:Recording Whiteboard Flag for Re Manuel is a Dealing Representative for Commonwealth Financial Inc., a mutual fund dealer. His dealer represents many different mutual fund families available, including their own: CF Group of Funds. He is considering recommending a CF equity fund to one of his clients, Stefania. While describing details about the fund, he informs her that accounts are set-up in nominee name, and that their mutual funds are not transferable. In addition, the fund does pay trailer fees. What type of information has Manuel described about his potential investment recommendation? The material conflict of interest O Features of a locked-in plan O Excessive trading A Letter of Engagement k
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