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The Compliance Officer of an AMC is required to report directly to the
A{'text': 'Head of Sales', 'label': 'A'}
B{'text': 'Chief Financial Officer', 'label': 'B'}
C{'text': 'Head of the AMC', 'label': 'C'}
D{'text': 'Head of Fund Management', 'label': 'D'}
Answer & Solution
Correct answer: C. {'text': 'Head of the AMC', 'label': 'C'}
1. Independence of the compliance function is critical for investor protection.
2. To secure that independence, the Compliance Officer reports directly to the head of the AMC.
3. Any non-compliance must be flagged immediately to the Trustees.
4. Reporting into sales, finance or fund management would compromise the check.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.3.1_
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