Under Know the Consumer, if a client specifies the type of investment, the financial institution, and how much per type, the adviser is exempt from Know the Consumer checks.

• A. The adviser must comply and proceed with the investment.
• B. The adviser is exempt and may proceed without Know the Consumer checks.
• C. The adviser is not required because the client specified all three.
• D. The adviser may proceed only after 7 days.

Answer: (C)

Know the Consumer exemptions apply when a client provides a complete, prescriptive instruction for a specific transaction. If the client specifies the exact type of investment, the institution handling it, and the amount per type, the transaction is fully defined and there’s no ambiguity left to verify. In that scenario, the adviser is not required to perform Know the Consumer checks for that instruction and may proceed without them. If any detail were incomplete or subject to variation, the checks would still be needed.