Answer: Statement of Duties and Responsibilities.

## Explanation In an Investment Policy Statement (IPS), the **Statement of Duties and Responsibilities** section typically outlines the specific roles and responsibilities of all parties involved in the investment management process. This includes: 1. **Client's responsibilities** - such as providing accurate information, funding the account, etc. 2. **Investment manager's responsibilities** - investment decisions, reporting, etc. 3. **Custodian's responsibilities** - safekeeping of assets, settlement of trades, record-keeping, etc. 4. **Other service providers' roles** - such as accountants, lawyers, etc. Let's examine why the other options are incorrect: **A. Procedures** - This section typically covers operational aspects like reporting frequency, communication protocols, and administrative procedures, but not specifically the custodian's role. **B. Investment Guidelines** - This section outlines the investment strategy, asset allocation, risk tolerance, and specific investment restrictions, but doesn't detail the custodian's duties. **C. Statement of Duties and Responsibilities** - This is the correct section where the custodian's specific role in safeguarding assets, settling transactions, and maintaining records would be clearly defined. ### Key Points: - The custodian is responsible for the safekeeping of client assets - They handle trade settlement and record-keeping - Their specific duties need to be clearly documented in the IPS - This clarity helps prevent misunderstandings and ensures proper oversight of client assets Therefore, option C is the correct answer as it most likely contains the detailed description of the custodian's role in managing the client's assets.

Author: LeetQuiz .