Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IFSE Institute CIFC Exam - Topic 4 Question 12 Discussion

Josephine is a Dealing Representative with Sunshine Mutual Funds Inc. for over 10 years. Her brother Jonathan has an account with Sunshine Mutual Funds Inc., too. Jonathan wants Josephine to manage hisportfolio and make investment decisions on his behalf. Jonathan trusts his sister to make better investment choices than he can. He also wants to give Power of Attorney (POA) to Josephine so she can have full authority over his account.How can Josephine respond to her brother's request?
A) Josephine can accept a limited POA.
B) Josephine cannot accept the POA as she is not the immediate family.
C) Josephine can accept the POA as it is an exception that is permitted under the MFDA rules.
D) Josephine should accept the POA after making a full disclosure to her dealer about the POA.

IFSE Institute CIFC Exam - Topic 4 Question 12 Discussion

Actual exam question for IFSE Institute's CIFC exam
Question #: 12
Topic #: 4
[All CIFC Questions]

Josephine is a Dealing Representative with Sunshine Mutual Funds Inc. for over 10 years. Her brother Jonathan has an account with Sunshine Mutual Funds Inc., too. Jonathan wants Josephine to manage his

portfolio and make investment decisions on his behalf. Jonathan trusts his sister to make better investment choices than he can. He also wants to give Power of Attorney (POA) to Josephine so she can have full authority over his account.

How can Josephine respond to her brother's request?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Kiley at Nov 22, 2025, 07:22 PM

Limited Time Offer

25%

Off

Get Premium CIFC Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Gearldine
3 months ago
Good point, Carin. Full disclosure protects both of them.
upvoted 0 times
...
Carin
3 months ago
I believe she should disclose everything to her dealer first. Transparency is key.
upvoted 0 times
...
Ty
3 months ago
I agree with Carlene. The rules allow it, so why not?
upvoted 0 times
...
Carlene
3 months ago
I feel she can accept it as an exception under MFDA rules.
upvoted 0 times
...
Andrew
4 months ago
But isn't it risky? She could face conflicts of interest.
upvoted 0 times
...
Shonda
4 months ago
Not sure if that's a good idea, could get messy.
upvoted 0 times
...
Graham
4 months ago
Totally agree, full disclosure is key!
upvoted 0 times
...
Lashonda
4 months ago
Wait, is she really allowed to manage her brother's account?
upvoted 0 times
...
Ronny
5 months ago
I think she should disclose it to her dealer first.
upvoted 0 times
...
Joanna
5 months ago
Option D is the way to go. Josephine should accept the POA after making a full disclosure to her dealer.
upvoted 0 times
...
Lezlie
5 months ago
Haha, Josephine should just tell her brother, "Sorry bro, can't touch your money. That's a hard pass from me!"
upvoted 0 times
...
Avery
5 months ago
Option B is the correct answer. Josephine cannot accept the POA as she is not the immediate family.
upvoted 0 times
...
Teresita
5 months ago
I’m a bit confused; I thought family members could always manage accounts, but maybe there are exceptions I’m missing.
upvoted 0 times
...
Twanna
6 months ago
I practiced a similar question where a family member wanted to give POA, and I think the answer was about full disclosure.
upvoted 0 times
...
My
6 months ago
I think option C sounds familiar, but I also recall that there are specific disclosures required in these situations.
upvoted 0 times
...
Lelia
6 months ago
This question is making me nervous. I better review the material on conflicts of interest and POA rules before the exam. Don't want to mess this one up.
upvoted 0 times
...
Sharika
6 months ago
I'm a bit confused about the exception that's mentioned in option C. I'll need to make sure I understand the MFDA rules on that before deciding.
upvoted 0 times
...
Malcolm
6 months ago
Okay, I'm pretty confident that Josephine can accept a limited POA, but she'll need to disclose it to her dealer. That seems like the safest approach here.
upvoted 0 times
...
Stephania
6 months ago
I remember something about POA rules, but I'm not sure if family relationships change anything.
upvoted 0 times
...
Margery
7 months ago
Josephine can accept a limited POA.
upvoted 0 times
...
Alesia
7 months ago
I think Josephine should accept a limited POA. It makes sense.
upvoted 0 times
...
Elke
7 months ago
I agree with Avery. Josephine should not accept the POA, as that would be a conflict of interest.
upvoted 0 times
...
Olene
7 months ago
Sunshine Mutual Funds should really consider changing their name to "Cloudy Mutual Funds" if they allow this kind of thing.
upvoted 0 times
...
Blossom
7 months ago
Hmm, this seems like a tricky situation. I'm not sure if Josephine can accept the POA since she's not immediate family. I'll need to double-check the rules on that.
upvoted 0 times
...
Fatima
8 months ago
I think the key here is to determine whether Josephine can legally accept the POA from her brother. The question mentions MFDA rules, so I'll need to review those carefully.
upvoted 0 times
Ressie
2 months ago
I think full disclosure is the safest route for her.
upvoted 0 times
...
Evangelina
2 months ago
The MFDA rules might allow her to accept it, but it's tricky.
upvoted 0 times
...
Alpha
2 months ago
She should definitely disclose everything to her dealer first.
upvoted 0 times
...
Wilford
2 months ago
But isn't there a conflict of interest?
upvoted 0 times
...
Dorinda
3 months ago
I believe Josephine can accept a limited POA.
upvoted 0 times
...
...

Save Cancel