n NISM Certifications
X NISM Series X
Medium

A material change in an AIF includes alteration of the fee structure adversely affecting investors, change in control of the sponsor or manager, or significant internal restructuring. Such changes can impact investor decisions and are classified as material modifications.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Change in fee structure adversely affecting the investors

  2. B

    Change in control of sponsor / manager

  3. C

    Internal restructuring of sponsor companies

  4. All A, B and C

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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