What is a Client Waiver in the context of UITFs?

In the context of Unit Investment Trust Funds (UITFs), a Client Waiver refers to a document that investors may be required to sign when they choose to invest in UITFs that have a higher risk profile. This waiver serves as a formal acknowledgment by the investor that they understand and accept the risks associated with investing in these higher-risk funds. By signing the waiver, the client indicates that they are aware of the potential for greater volatility or loss in their investment, which is particularly important for regulatory compliance and to ensure that investors are making informed decisions about their financial risk exposure.

The other options, while related to the investment process, do not accurately describe the specific purpose of a Client Waiver. A document for withdrawing from a UITF does not pertain to risk acknowledgment but rather to an investor's exit from an investment. A disclosure of risks associated with low-risk funds does not align with the concept of a waiver for high-risk investments. Lastly, a form for changing investment preferences focuses on the adjustments in investment strategies rather than the acceptance of risk that comes with specific investment choices. Thus, the focus on acknowledging higher risk makes the option about the Client Waiver the most accurate in this context.