Canadian Mutual Funds Regulation Organizations
38 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary mandate of Securities Regulators?

  • Increase systemic risk in the capital markets
  • Promote fraudulent practices
  • Reduce confidence in capital markets
  • Protect investors from unfair practices (correct)

    • Which organization administers jurisdiction-specific Securities Acts or equivalent legislation?

  • Investment Industry Regulatory Organization of Canada (IIROC)
  • Mutual Fund Dealers Association of Canada (MFDA)
  • Canadian Securities Administrators (CSA) (correct)
  • Ombudsman for Banking Services and Investments (OBSI)

    • What differentiates the regulatory requirements for firms regulated by Securities Regulators and those regulated by self-regulatory organizations (SROs)?

  • The application of rules to related investment products (correct)
  • The focus on systemic risk mitigation
  • The extension of regulations to different industries
  • The promotion of unfair practices

    • Which organization has the power to grant or revoke registrations in the Mutual Funds industry?

    <p>Mutual Fund Dealers Association of Canada (MFDA)</p> Signup and view all the answers

    What is NOT a mandate of Securities Regulators?

    <p>Promote fraudulent investment schemes</p> Signup and view all the answers

    Which body sets its own standards for registration in the Mutual Funds industry?

    <p>Securities Regulators</p> Signup and view all the answers

    What is the role of self-regulatory organizations (SROs) regarding registered firms?

    <p>Extension of regulatory requirements to related investment products</p> Signup and view all the answers

    What do provincial and territorial securities regulators primarily aim to protect investors from?

    <p>Improper and fraudulent practices</p> Signup and view all the answers

    What must Canadian financial institutions do if there is an indication that a client may be a US person?

    <p>Ask the client to certify whether they are a US person</p> Signup and view all the answers

    What action should the firm take if a new client refuses to certify whether they are a US person?

    <p>Report the account to the Canada Revenue Agency (CRA)</p> Signup and view all the answers

    When must Canadian financial institutions ask new clients to certify whether they are US persons?

    <p>At the time the account is opened</p> Signup and view all the answers

    What does the Canadian financial institution need to do if a client refuses to clarify their status as a US person?

    <p>Report the account as a US account to the CRA</p> Signup and view all the answers

    What is one way for Canadian financial institutions to confirm a client's certification of their US status?

    <p>Request a signed affidavit from the client</p> Signup and view all the answers

    When reviewing information for existing clients, what should Canadian financial institutions look for to identify US persons?

    <p>Indications like a US address in the records</p> Signup and view all the answers

    What should Canadian financial institutions do if a client claims not to be a US person?

    <p>Verify and ask for supporting documentation</p> Signup and view all the answers

    What is the consequence if a Canadian financial institution fails to report an account as a US account when necessary?

    <p>The institution may face penalties or sanctions</p> Signup and view all the answers

    What is the focus of the standard of conduct introduced by the Mutual Fund Dealers Association of Canada (MFDA)?

    <p>Ethics and ethical behavior</p> Signup and view all the answers

    How long does it take to complete the unit that introduces the MFDA's standard of conduct?

    <p>1 hour and 30 minutes</p> Signup and view all the answers

    What is defined as 'the principles of conduct governing an individual or a group'?

    <p>Ethics</p> Signup and view all the answers

    What is the main purpose of ethical conduct as mentioned in the text?

    <p>Conforming to approved standards</p> Signup and view all the answers

    Which lesson in the unit 'Registrant Responsibilities' specifically focuses on Compliance?

    <p>Lesson 2: Compliance</p> Signup and view all the answers

    What is the role of Dealing Representatives in relation to ethical standards as per the text?

    <p>Adhering to ethical standards</p> Signup and view all the answers

    How long does it take to complete the lesson that introduces ethics for Dealing Representatives?

    <p>15 minutes</p> Signup and view all the answers

    What is the purpose of having 'an overall understanding of ethics and ethical behavior' as per the text?

    <p>Discussing best practices for proper conduct</p> Signup and view all the answers

    What type of conflicts can arise from proprietary products according to the text?

    <p>Compensation-related conflicts</p> Signup and view all the answers

    Which of the following is NOT mentioned as a compensation-related conflict in the text?

    <p>Currency exchange rates</p> Signup and view all the answers

    When will DSC funds be banned in all jurisdictions according to the text?

    <p>June 1, 2022</p> Signup and view all the answers

    What is a potential conflict that can arise from a compensation structure that motivates the sale of a particular product?

    <p>Trailing commissions/fees</p> Signup and view all the answers

    Which compensation-related conflict involves an ongoing stream of income over time?

    <p>Trailing commissions/fees</p> Signup and view all the answers

    What type of benefits may be associated with conflicts arising from proprietary products?

    <p>Referral fees</p> Signup and view all the answers

    Which type of fees or charges will be banned effective June 1, 2022, according to the text?

    <p>Deferred sales charge (DSC)</p> Signup and view all the answers

    What distinguishes Tom's action from Peter's action in the text?

    <p>Tom's action violated his company policy, while Peter's did not.</p> Signup and view all the answers

    In the context of the text, how is Marianne's behavior characterized?

    <p>Both unethical and illegal.</p> Signup and view all the answers

    What actions should a mutual fund dealer take in case of a regulatory breach according to the text?

    <p>Disciplinary action and reporting the breach to the MFDA.</p> Signup and view all the answers

    Which of the following best describes why Marianne's behavior is considered unethical?

    <p>Marianne deposited client funds into her personal account.</p> Signup and view all the answers

    Why is it important for employees to adhere to their company's policies according to the text?

    <p>To avoid regulatory breaches.</p> Signup and view all the answers

    What consequence does Tom face due to his unethical actions in the text?

    <p>Disciplinary actions.</p> Signup and view all the answers

    Which factor determines whether an action is considered unethical in the text?

    <p>Whether it violates company policy.</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser