Chartered Investment Manager (CIM) Practice Exam · Question
A Canadian IPS for a high-net-worth individual includes a directive to minimize capital gains tax and optimize the use of their TFSA and RRSP accounts. This falls under which section of the IPS?
Specific tax management strategies like minimizing capital gains and optimizing registered accounts are considered special constraints or considerations, as the
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Question: A Canadian IPS for a high-net-worth individual includes a directive to minimize capital gains tax and optimize the use of their TFSA and RRSP accounts. This falls under which section of the IPS?
Answer options:
- Investment Objectives
- Reporting & Review Procedures ✅ Special Considerations/Constraints
- Permissible Investments
Correct answer: Special Considerations/Constraints
Explanation: Specific tax management strategies like minimizing capital gains and optimizing registered accounts are considered special constraints or considerations, as they influence investment decisions and portfolio structure beyond standard risk/return objectives.
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