As a Result of Illegal and Abusive Activities in Recent

question 109

Multiple Choice

As a result of illegal and abusive activities in recent years, new rules and regulations were imposed on mutual fund companies in 2004.These rules were intended to

• A)close legal loopholes that some fund managers had abused.
• B)improve fund governance.
• C)give investors more information about conflicts of interest.
• D)ensure the accuracy of information given to regulators.
• E)All of the options.

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Definitions:

Arbitration

A method of dispute resolution involving a neutral third party who makes a binding decision to resolve a dispute between two parties.

Complaint

The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that, when filed with a court, initiates a lawsuit.

Court

A governmental institution authorized to resolve legal disputes, enforce laws, and issue judgments.

Appellate Court

A court that reviews and potentially revises the decisions made by lower courts, focusing on the application and interpretation of law rather than fact-finding.