IFSE Institute CIFC Exam - Topic 4 Question 12 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 12
Topic #: 4

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?

AJosephine can accept a limited POA.

BJosephine cannot accept the POA as she is not the immediate family.

CJosephine can accept the POA as it is an exception that is permitted under the MFDA rules.

DJosephine should accept the POA after making a full disclosure to her dealer about the POA.

Show Suggested Answer

Suggested Answer: A

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

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Gearldine

1 month ago

Good point, Carin. Full disclosure protects both of them.

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Carin

1 month ago

I believe she should disclose everything to her dealer first. Transparency is key.

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Ty

2 months ago

I agree with Carlene. The rules allow it, so why not?

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Carlene

2 months ago

I feel she can accept it as an exception under MFDA rules.

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Andrew

2 months ago

But isn't it risky? She could face conflicts of interest.

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Shonda

2 months ago

Not sure if that's a good idea, could get messy.

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Graham

3 months ago

Totally agree, full disclosure is key!

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Lashonda

3 months ago

Wait, is she really allowed to manage her brother's account?

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Ronny

3 months ago

I think she should disclose it to her dealer first.

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Joanna

3 months ago

Option D is the way to go. Josephine should accept the POA after making a full disclosure to her dealer.

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Lezlie

3 months ago

Haha, Josephine should just tell her brother, "Sorry bro, can't touch your money. That's a hard pass from me!"

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Avery

4 months ago

Option B is the correct answer. Josephine cannot accept the POA as she is not the immediate family.

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Teresita

4 months ago

I’m a bit confused; I thought family members could always manage accounts, but maybe there are exceptions I’m missing.

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Twanna

4 months ago

I practiced a similar question where a family member wanted to give POA, and I think the answer was about full disclosure.

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My

4 months ago

I think option C sounds familiar, but I also recall that there are specific disclosures required in these situations.

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Lelia

4 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.

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Sharika

5 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.

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Malcolm

5 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.

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Stephania

5 months ago

I remember something about POA rules, but I'm not sure if family relationships change anything.

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Margery

5 months ago

Josephine can accept a limited POA.

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Alesia

5 months ago

I think Josephine should accept a limited POA. It makes sense.

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Elke

6 months ago

I agree with Avery. Josephine should not accept the POA, as that would be a conflict of interest.

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Olene

6 months ago

Sunshine Mutual Funds should really consider changing their name to "Cloudy Mutual Funds" if they allow this kind of thing.

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Blossom

6 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.

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Fatima

6 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.

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