32 Questions
What is the primary purpose of the securities regulation in Canada?
To protect the interests of both the investing public and industry participants
Which regulatory body oversees mutual funds in Canada at a national level?
Canadian Securities Administrators (CSA)
What is the role of the Mutual Fund Dealers Association of Canada (MFDA) in the securities industry?
Regulating mutual fund dealers
Which organization acts as an investment industry self-regulatory organization in Canada?
Investment Industry Regulatory Organization of Canada (IIROC)
Which legislative bodies regulate the securities industry in Canada?
Federal and provincial governments
What is the role of the Office of the Superintendent of Financial Institutions Canada (OSFI) in the financial sector?
Supervising federally regulated financial institutions
What distinguishes dealing representatives in Canada with regards to regulations?
They need to adhere to regulations for investor protection
What are some examples of circumstances that constitute a conflict of interest according to CP 31-103?
Monetary benefits available to the registrant
Under CP 31-103, when is a conflict of interest considered material?
When it affects the decisions of the client
What is one factor that should be considered when determining whether a conflict is material?
The impact on recommendations or decisions made
What legislation introduced requirements governing conflicts of interest between registrants and clients?
Client Focused Reforms (CFR)
What is the main purpose of NI 81-101 - Mutual Fund Prospectus Disclosure?
Disclosing information for investors to consider when investing in a fund
What does NI 81-102 - Mutual Funds regulate?
How mutual funds are bought and sold
Which National Instrument sets minimum standards of conduct to be followed when distributing mutual funds?
NI 81-105 - Mutual Fund Sales Practices
What documents are prescribed by NI 81-101 for disclosure?
Simplified prospectus, the Fund Facts, and the annual information form
Which National Instrument provides harmonized registration rules for firms and individuals with securities commissions?
NI 31-103 - Registration Requirements and Exemptions
Who needs to follow the standards set by NI 81-105 - Mutual Fund Sales Practices?
Managers, distributors, and dealing representatives selling mutual funds
Which National Instrument focuses on regulating how mutual funds are managed?
NI 81-102 - Mutual Funds
What type of information do Commercial Electronic Messages (CEMs) contain?
Promotional or commercial information
Under CASL, what is one of the conditions that must be met before organizations send CEMs to consumers?
The recipient must have consented to receive the message
What is one of the requirements for the content of a CEM under CASL?
It must enable the recipient to withdraw consent and unsubscribe
In what situation are organizations permitted to provide consumers with the option to unsubscribe from only certain types of messages?
When they also provide consumers with the option to unsubscribe from all future messages
What is one way for recipients to identify the sender in a Commercial Electronic Message (CEM)?
The message includes information that identifies the sender
Which of the following is NOT a condition that must be met before sending a CEM under CASL?
Sending messages only during public holidays
What is one requirement an organization must meet if they provide consumers with the option to unsubscribe from certain types of messages?
Also providing an option to unsubscribe from all future messages
According to MFDA Rule 2.3.1, a Dealing Representative is prohibited from having authority over client accounts acting as which of the following?
Power of Attorney
Which of the following is NOT permitted under the rules regarding Personal Financial Dealings with Clients and Control over Client Accounts?
Acting as a trustee
If a Dealing Representative has authority over a client's account under a Power of Attorney, what action is required?
Disclose the authority to the firm
What is the stance on borrowing from clients based on the guidelines provided?
Not permitted except with firm-approved exceptions
Which of the following is an exception that may allow a Dealing Representative to advance funds for redemptions?
Client's financial hardship
What action should be taken if a Dealing Representative purchases an asset from a client outside the normal course of business?
Disclose to the firm and follow procedures
Under what circumstances may limited exceptions allow advancing funds for redemptions?
If permitted by the firm due to financial constraints on the client
Learn about the structure of securities regulation in Canada and the roles of various regulatory bodies like Provincial securities commissions, CSA, MFDA, AMF, CSF, IIROC, OBSI, and OSFI.
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