38 Questions
What is the primary mandate of Securities Regulators?
Protect investors from unfair practices
Which organization administers jurisdiction-specific Securities Acts or equivalent legislation?
Canadian Securities Administrators (CSA)
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
Which organization has the power to grant or revoke registrations in the Mutual Funds industry?
Mutual Fund Dealers Association of Canada (MFDA)
What is NOT a mandate of Securities Regulators?
Promote fraudulent investment schemes
Which body sets its own standards for registration in the Mutual Funds industry?
Securities Regulators
What is the role of self-regulatory organizations (SROs) regarding registered firms?
Extension of regulatory requirements to related investment products
What do provincial and territorial securities regulators primarily aim to protect investors from?
Improper and fraudulent practices
What must Canadian financial institutions do if there is an indication that a client may be a US person?
Ask the client to certify whether they are a US person
What action should the firm take if a new client refuses to certify whether they are a US person?
Report the account to the Canada Revenue Agency (CRA)
When must Canadian financial institutions ask new clients to certify whether they are US persons?
At the time the account is opened
What does the Canadian financial institution need to do if a client refuses to clarify their status as a US person?
Report the account as a US account to the CRA
What is one way for Canadian financial institutions to confirm a client's certification of their US status?
Request a signed affidavit from the client
When reviewing information for existing clients, what should Canadian financial institutions look for to identify US persons?
Indications like a US address in the records
What should Canadian financial institutions do if a client claims not to be a US person?
Verify and ask for supporting documentation
What is the consequence if a Canadian financial institution fails to report an account as a US account when necessary?
The institution may face penalties or sanctions
What is the focus of the standard of conduct introduced by the Mutual Fund Dealers Association of Canada (MFDA)?
Ethics and ethical behavior
How long does it take to complete the unit that introduces the MFDA's standard of conduct?
1 hour and 30 minutes
What is defined as 'the principles of conduct governing an individual or a group'?
Ethics
What is the main purpose of ethical conduct as mentioned in the text?
Conforming to approved standards
Which lesson in the unit 'Registrant Responsibilities' specifically focuses on Compliance?
Lesson 2: Compliance
What is the role of Dealing Representatives in relation to ethical standards as per the text?
Adhering to ethical standards
How long does it take to complete the lesson that introduces ethics for Dealing Representatives?
15 minutes
What is the purpose of having 'an overall understanding of ethics and ethical behavior' as per the text?
Discussing best practices for proper conduct
What type of conflicts can arise from proprietary products according to the text?
Compensation-related conflicts
Which of the following is NOT mentioned as a compensation-related conflict in the text?
Currency exchange rates
When will DSC funds be banned in all jurisdictions according to the text?
June 1, 2022
What is a potential conflict that can arise from a compensation structure that motivates the sale of a particular product?
Trailing commissions/fees
Which compensation-related conflict involves an ongoing stream of income over time?
Trailing commissions/fees
What type of benefits may be associated with conflicts arising from proprietary products?
Referral fees
Which type of fees or charges will be banned effective June 1, 2022, according to the text?
Deferred sales charge (DSC)
What distinguishes Tom's action from Peter's action in the text?
Tom's action violated his company policy, while Peter's did not.
In the context of the text, how is Marianne's behavior characterized?
Both unethical and illegal.
What actions should a mutual fund dealer take in case of a regulatory breach according to the text?
Disciplinary action and reporting the breach to the MFDA.
Which of the following best describes why Marianne's behavior is considered unethical?
Marianne deposited client funds into her personal account.
Why is it important for employees to adhere to their company's policies according to the text?
To avoid regulatory breaches.
What consequence does Tom face due to his unethical actions in the text?
Disciplinary actions.
Which factor determines whether an action is considered unethical in the text?
Whether it violates company policy.
Learn about the key organizations involved in regulating the Mutual Funds industry in Canada, such as the Canadian Securities Administrators, MFDA, OBSI, IIROC, and OSFI. Understand the roles and mandates of these regulatory bodies.
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