An advisor has all client advisory fees automatically deducted from their accounts by the custodian.  Under this circumstance, the advisor is not considered to have custody of client funds if which of the following conditions are met?
I. The advisor sends the client a copy of the bill within 10 days after deduction from their account
II. The custodian sends the client a statement at least quarterly
III. The client has provided written authorization for the fees to be deducted
IV. The advisor sends the client the value of the assets and how the fee was calculated
A) I and III only
B) I, II and III
C) II, III and IV
D) I, II, III and IV

The correct answer is c)
An advisor is not deemed to have custody of client funds when debiting management fees from the client account directly if all of the following conditions are met:  the client must have provided written authorization to do so, the custodian agrees to send the client statements at least quarterly, and a copy of the bill and the manner in which the fee was calculated is provided to the client and custodian at the same time.


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