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Answer: Investment constraints may be imposed by the client or regulatory requirements.
**Explanation:** - **Option A** is incorrect because while sustainable investing policies can be documented separately, they are often integrated within the IPS itself. The integration of sustainable investing within the IPS is a common practice. - **Option B** is correct. Investment constraints can be categorized as internal (set by the client) or external (imposed by laws or regulations). This flexibility is a key feature of an IPS. - **Option C** is incorrect because clients may specify multiple spending goals, each with distinct risk tolerances and return objectives, as part of their financial planning. The IPS accommodates such variations to align with the client's needs.
Author: LeetQuiz Editorial Team
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Which of the following statements is most accurate concerning an Investment Policy Statement (IPS)?
A
Sustainable investing policies necessitate a distinct IPS.
B
Investment constraints may be imposed by the client or regulatory requirements.
C
Clients can define various spending goals, but each goal must share identical risk tolerance and return objectives.
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