Question

An Investment Adviser wants to change its approach and management style, focusing more on growth funds and emerging company stocks and less on strategies that provide stable income. In order for the Investment Adviser to do this

Answer 1

B. each customer must approve the change by signing a new advisory agreement.

Step-by-step explanation:

The remember the role of an investment adviser (IA) is to give advice to his clients about investing in securities such as stocks, bonds, mutual funds, or other tradable assets.

The IA works for his clients and would thus need their consent for such a change in management style. Thus to implement this change each customer must sign a new advisory agreement.