Explanation:
The assertion that Form ADV data cannot be used to predict fraud is incorrect and therefore does not present a barrier to the implementation of fraud prediction methodologies. Form ADVs are forms that investment advisors use to register with both the Securities and Exchange
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Q.4855 Which of the following is least likely a barrier to the implementation of fraud prediction methods?
A
Assessing whether investors are compensated for the risk of fraud through performance or fees requires fund level data.
B
Historical Form ADV files may not be available for scrutiny by the general public, denying investors an opportunity to assess the fraud record of firms.
C
Information in Forms ADV may be provided in a format that is not suitable for statistical analysis.
D
Form ADV data cannot be used to predict fraud.
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