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CTP · Question #326
CTP Question #326: Real Exam Question with Answer & Explanation
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Question
- (Topic 4) A U.S. company's pension plan is managed by an investment management firm, headquartered outside the United States. The investment management firm outsources the accounting for the plan to an organization on the Office of Foreign Assets Control (OFAC) sanctions lists and the firm does not advise the U.S. company of this fact. A financial loss in the pension plan is later realized due to the mismanagement of funds. When establishing its contract with the firm to protect itself from losses in the pension plan, the company should have:
Options
- Aidentified the exception management process.
- Bincluded a limitation of liability clause in the contract.
- Creferred to the Foreign Corrupt Practices Act in the contract.
- Dspecified what constitutes other-than-temporary-impairment for the investments.
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