In relation to promoting a property fund to clients, the Consumer Protection Code requires the bank to do which of the following?

In relation to promoting a property fund to clients, the Consumer Protection Code requires the bank to do which of the following?

• A. Not sell this property fund to customers until after the fund has purchased the property in question.
• B. Give investors a 30-day cooling off period.
• C. Seek written confirmation from potential investors that they are aware of the conflict of interest and still want to proceed with the investment.
• D. Immediately seek the permission of the Central Bank to continue marketing the fund to its clients.

Answer: (C)

The key idea is that when promoting a property fund, the bank must handle conflicts of interest transparently and obtain informed consent from the investor. The required step is to make sure investors are aware of any material conflict of interest and to get their written confirmation that they understand the issue and still want to proceed. This protects clients by ensuring they make a fully informed decision rather than being influenced by the bank’s incentives. Cooling-off periods, while common in some contexts, are not the specific obligation described here. Likewise, there is no mandate to delay the sale until the property is purchased, nor to obtain immediate Central Bank permission to continue marketing the fund.

The key idea is that when promoting a property fund, the bank must handle conflicts of interest transparently and obtain informed consent from the investor. The required step is to make sure investors are aware of any material conflict of interest and to get their written confirmation that they understand the issue and still want to proceed. This protects clients by ensuring they make a fully informed decision rather than being influenced by the bank’s incentives.

Cooling-off periods, while common in some contexts, are not the specific obligation described here. Likewise, there is no mandate to delay the sale until the property is purchased, nor to obtain immediate Central Bank permission to continue marketing the fund.