Chapter 12 - Registration

Questions and Answers

What must an applicant demonstrate to obtain an exemption from CIRO requirements?

Prior approval from provincial regulators in all cases

Equivalency to topics covered in the specified course through experience or courses (correct)

Financial capability to operate independently

A minimum of five years of experience in the field

What is the maximum duration for which records of supervisors must be preserved by dealer members?

Ten years without any on-site requirement

Three years, regardless of the on-site condition

Seven years, with the first year on-site (correct)

Five years from the date of record

Who must be appointed by CIRO dealer members to perform specific supervisory functions?

Supervisors specific to their supervisory roles (correct)

Customer service representatives

External compliance auditors

Trained account executives

If a previous registrant is no longer registered, what can they consider to maintain their proficiencies?

Voluntary participation in ongoing CE obligations Signup and view all the answers

What is required of dealer members in relation to the supervisors they appoint?

They need to maintain details of supervisors including scope and duration Signup and view all the answers

In jurisdictions where provincial registration has been delegated to CIRO, what must individuals consider when applying for exemptions?

Separate applications may be required from provincial regulators Signup and view all the answers

What specific supervisory responsibilities must CIRO supervisors fulfill?

Supervise the pre-approval of advertising and correspondence Signup and view all the answers

What should individuals seek when considering whether a specific supervisory course of action is necessary?

Consultation with their compliance department Signup and view all the answers

What are the primary responsibilities of a Chief Compliance Officer (CCO) when dealing with registration applications?

To ensure continuous updates of relevant applicant information Signup and view all the answers

What aspect did the CSA aim to modernize with NI 31-103 regarding registration requirements?

To adopt a more principle-based system Signup and view all the answers

Which of the following is NOT a reason for an application for individual approval to be denied?

Lack of compliance monitoring Signup and view all the answers

Why is it critical for registrants to continuously update their registration information?

To maintain good standing with their dealer member and regulators Signup and view all the answers

What key change did the CIRO and its predecessor organizations implement regarding registration categories?

Narrowed the number of registration categories Signup and view all the answers

What is typically an ongoing obligation of registered individuals towards their dealer members?

Regularly updating their proficiency and experience information Signup and view all the answers

In what context is registration considered a privilege, according to CIRO's rules?

When applicants demonstrate integrity and experience Signup and view all the answers

What is a consequence of failing to disclose significant information on registration applications?

Potential compliance issues due to undisclosed risks Signup and view all the answers

What is the total number of training hours required for the CIRO CE program?

30 hours Signup and view all the answers

Who is specifically required to complete the compliance portion of the CIRO CE program?

All Approved Persons Signup and view all the answers

What consequence faces Approved Persons who do not complete their CE requirements by the end of the two-year cycle?

Suspension of their approval and fines on the sponsoring dealer member Signup and view all the answers

Which training format is NOT necessary for dealer members when providing CE courses?

In-house training development Signup and view all the answers

Which of the following can support corporate goals as part of CE compliance courses?

课程可以培养对道德价值观的理解 Signup and view all the answers

What is the role of Chief Compliance Officers in relation to CE training programs?

To select or approve courses and provide input on internal training Signup and view all the answers

What must dealer members maintain regarding their employees' CE requirements?

Evidences of course completion and reporting to CIRO Signup and view all the answers

What process allows individuals to seek an exemption from writing certain required courses?

Formal application to CIRO for review Signup and view all the answers

Study Notes

Compliance and Registration Requirements

Compliance policies must adapt to rapidly evolving registration rules; continuous monitoring is essential.
Failure to update registration applications can lead to significant compliance issues, especially if critical information (e.g., bankruptcy, criminal charges) is undisclosed.
Registrants have an ongoing obligation to keep dealer members and regulators informed about relevant changes.

Proficiency Requirements

In 2009, CSA introduced NI 31-103 to modernize and harmonize registration categories and requirements.
CIRO has implemented a more principle-based system to provide flexibility to dealer members in compliance arrangements.
Familiarity with the current version of NI 31-103 and applicable CIRO notices is essential for understanding registration requirements.

Fit-and-Proper Test

CIRO generally approves applications unless disqualified by integrity, solvency, training, experience, or public interest.
Registration is considered a privilege, and obligations begin upon application for approval.
CIRO can grant exemptions from proficiency requirements and the need for specific courses or exams.

Exemption Criteria

Exemptions are applicable for individuals with alternate qualifications or experiences that maintain relevant skills.
Applicants must demonstrate equivalency to specified courses through industry experience or other courses.
Previous registrants can maintain proficiencies via voluntary participation in CE obligations without needing exemptions.

Supervisory Functions

CIRO mandates all dealer members appoint supervisors for specific functions, like account openings and advertising approval.
Supervisors must be recorded with their responsibilities, retained for seven years, including one year on-site.
CIRO’s CE program consists of 10 hours of compliance training and 20 hours of professional development training for Approved Persons.

Continuing Education (CE) Requirements

All Approved Persons must complete compliance training within a two-year cycle, with penalties for non-compliance.
CIRO fines sponsoring dealer members and suspends CE participant approvals for incomplete courses.
Dealer members can create their own CE courses or use accredited external providers; evidence of course completion must be maintained.

Training Program Development

Chief compliance officers should integrate CE requirements into training programs for registrants.
External courses should be leveraged alongside potentially developing in-house training programs.
Relevant CE courses might cover new CIRO rules, compliance refreshers, and training in ethical values and anti-money laundering practices.

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Description

This quiz focuses on the critical aspects of compliance policies, procedures, and training as required by chief compliance officers. It emphasizes the importance of monitoring registration rule changes and the implications of inaccurately completing registration applications. Engage with the material to enhance your understanding of compliance in the securities industry.