Chapter 15 - v1.3
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Chapter 15 - v1.3

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Questions and Answers

What should be ensured regarding the presence of individuals during the interview?

  • A manager of the interviewee should always be present.
  • No investigating staff members should have prior involvement in the case. (correct)
  • Two interviewees can be present for support.
  • Only one investigating staff member should be present.

    • What is a recommended setup for conducting interviews to ensure employee comfort?

  • A large conference room for multiple interviewees.
  • A private office without glass partitions. (correct)
  • An open area with no partitions.
  • An informal space like a break room.

    • What approach should be taken if an employee remains reluctant to answer questions?

  • Threaten them with job termination for non-cooperation.
  • Ignore their reluctance and continue with questions.
  • Inform them of their responsibilities to the dealer member and clients. (correct)
  • Reassure them that no investigation will take place.

    • What should the interviewer do if the matter under investigation is considered very serious?

    <p>Record the interview for accuracy.</p> Signup and view all the answers

    What is the primary purpose of advising the interviewee about the seriousness of the interview?

    <p>To present it as an opportunity to disclose their perspective.</p> Signup and view all the answers

    Why is it important for the investigation team to prepare a list of questions before the interview?

    <p>It reduces the need for follow-up interviews.</p> Signup and view all the answers

    What is advised regarding the number of investigating staff present during the interview?

    <p>Two members should be present, but not involved in the investigation.</p> Signup and view all the answers

    How should any documents mentioned during the interview be handled?

    <p>They should be made available throughout the interview.</p> Signup and view all the answers

    What reassurance should be given to the employee regarding job termination questions?

    <p>Any decisions regarding termination will follow the investigation's outcome.</p> Signup and view all the answers

    What is one of the powers that securities regulatory authorities possess?

    <p>The power to compel witnesses to attend interviews</p> Signup and view all the answers

    Which of the following actions can securities administrators take on an interim basis?

    <p>Cancelling or suspending the registration of any registrant</p> Signup and view all the answers

    Under what circumstances may securities administrators initiate an investigation?

    <p>When there is a public complaint or an internal review</p> Signup and view all the answers

    What is a potential consequence for individuals found in violation of securities legislation?

    <p>Issuing a Notice of Hearing for compliance assessment</p> Signup and view all the answers

    Which of these powers is NOT granted to securities administrators during an investigation?

    <p>The power to enforce criminal penalties directly</p> Signup and view all the answers

    What might regulators do if they believe ongoing conduct is harmful to the public interest?

    <p>Issue a temporary order</p> Signup and view all the answers

    Securities administrators have the authority to gather documents and testimony for what purpose?

    <p>To determine breaches of securities legislation</p> Signup and view all the answers

    What action might securities administrators take if a registrant fails to comply with regulations?

    <p>Appoint a receiver or trustee</p> Signup and view all the answers

    What legal action can securities administrators take against any individual found to be in violation of the Securities Act?

    <p>Bring charges under the Securities Act in provincial court</p> Signup and view all the answers

    Which of the following powers does NOT require securities administrators to obtain voluntary evidence?

    <p>Compelling witnesses to hearings</p> Signup and view all the answers

    What is the maximum fine that can be imposed on an approved person for a single offense?

    <p>$5 million</p> Signup and view all the answers

    Which of the following sanctions can be imposed on a dealer member?

    <p>Termination of any or all of their rights and privileges</p> Signup and view all the answers

    What action may CIRO require from a respondent to improve compliance?

    <p>Retain a qualified independent consultant</p> Signup and view all the answers

    Which of the following is NOT a possible remedy imposed by CIRO?

    <p>Permanent reinstatement of approval</p> Signup and view all the answers

    In what situation is a fine most likely to be imposed as a form of general condemnation of misconduct?

    <p>In cases requiring a general condemnation of misconduct</p> Signup and view all the answers

    What could be a consequence of a dealer member being expelled from CIRO?

    <p>Loss of approval to deal with the public</p> Signup and view all the answers

    What is the maximum time frame for the initial hearing to be held after the order takes effect?

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

    What responsibility does the administrator have regarding evidence in the hearing process?

    <p>To disclose all relevant evidence, including helpful materials</p> Signup and view all the answers

    Which of the following powers does the hearing panel possess?

    <p>The authority to issue interim orders and compel witnesses</p> Signup and view all the answers

    What standard of proof must the administrator meet during the hearing process?

    <p>Balance of probabilities</p> Signup and view all the answers

    Which statement is true regarding appeals of the administrator's decision?

    <p>They may be appealed to a court of appeal with prior leave</p> Signup and view all the answers

    Which of the following is a characteristic of the hearing process?

    <p>It resembles a civil trial in its structure</p> Signup and view all the answers

    What role does counsel play for the respondent during the hearing?

    <p>Counsel can call witnesses and introduce evidence</p> Signup and view all the answers

    Which of the following is NOT a function of the administrator during the hearing process?

    <p>Issuing interim orders</p> Signup and view all the answers

    What does the term 'balance of probabilities' imply in the context of the hearing?

    <p>The evidence needs to create a reasonable likelihood of truth</p> Signup and view all the answers

    Which aspect of the hearing process reflects the seriousness of charges against the respondent?

    <p>The standard of proof becomes higher</p> Signup and view all the answers

    What is required from either the firm or the employee during the initial response phase of an investigation?

    <p>A verbal statement recorded under oath and document production</p> Signup and view all the answers

    In the case assessment phase, what happens if there is evidence of a regulatory breach?

    <p>It is referred to CIRO Enforcement Counsel for disciplinary action</p> Signup and view all the answers

    Which of the following parties are typically interviewed during the investigation phase?

    <p>The client-complainant, the registrant, and sales assistants</p> Signup and view all the answers

    How should the investigator handle the presence of in-house counsel during interviews?

    <p>Bar or expel them if their presence could impede the interview</p> Signup and view all the answers

    What happens after the investigation concludes and all evidence has been assessed?

    <p>A report with recommendations is submitted to the director of enforcement</p> Signup and view all the answers

    Why might it be advisable for an employee to retain their own counsel during an investigation?

    <p>To ensure independent legal advice if interests diverge</p> Signup and view all the answers

    What is the role of a compliance officer in the interview process?

    <p>They can attend but should not impede the interview or answer questions for the interviewee</p> Signup and view all the answers

    What should be ensured before an investigator allows a lawyer to represent an interviewee?

    <p>The lawyer's client is clearly identified as either the firm or the employee</p> Signup and view all the answers

    What key documentation is typically gathered during an investigation?

    <p>Transcripts of interviews and pertinent documentary evidence</p> Signup and view all the answers

    What is typically the first step if an initial review suggests the need for further investigation?

    <p>Referring the matter to the investigation department</p> Signup and view all the answers

    Study Notes

    Interviewing Employees

    • When interviewing employees, ensure privacy and comfort for the interviewee
    • The interview should be conducted in a private setting
    • Only two investigating staff members should be present
    • No manager or supervisor of the interviewee should be present
    • Prepare a list of questions beforehand but allow for unscripted questions
    • Advise the individual of the interview's purpose and seriousness
    • Remind reluctant interviewees of their responsibility to the dealer and clients

    Interviewing Management

    • Interviews of management team members should include a review of supervision or compliance issues related to the apparent misconduct

    Securities Regulatory Authorities

    • Securities Administrators have the following powers:
      • Compelling witnesses to attend interviews and hearings
      • Taking evidence under oath
      • Seizing documents
      • Freezing funds and other property

    Investigation Process

    • Securities administrators can initiate investigations based on:
      • Public complaints
      • Issues arising from audits
      • Referrals from other agencies
      • Internal reviews

    Initial Review

    • During an initial review, the matter may be referred to the investigation department for further investigation

    Further Investigation

    • Parties involved in a further investigation typically include:
      • Client-complainant
      • Registrant
      • Other dealer member personnel

    Investigation Report

    • A report is submitted with recommendations to the director of enforcement when the investigation is complete

    Interviewing Witnesses

    • Witnesses are entitled to have a lawyer present
    • The investigator may bar or expel a representative whose presence could impede the interview
    • The investigator may ask a lawyer to state whether they represent the dealer member or the employee
    • Many dealer members advise employees to retain their own counsel
    • A compliance officer may attend an interview, but should not impede the interview or attempt to answer questions for the interviewee

    Sanctions

    • Sanctions may be imposed on:
      • Approved persons
      • Dealer Members
      • Other entities
      • The respondent

    Other Remedies

    • The following remedies may also be imposed:
      • Requiring a qualified independent consultant to develop or implement compliance procedures
      • Ordering the disclosure of disciplinary history or sanctions to new and existing clients and the public
      • Requiring the implementation of heightened supervision of individuals or departments
      • Requiring the respondent to write an exam to requalify
      • Banning the respondent from acting in a compliance or supervisory position
      • Appointing a compliance monitor
      • Imposing a fine

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    Related Documents

    Regulatory Investigations Chapter 15 PDF

    Description

    This quiz covers best practices for interviewing employees, including the importance of privacy and comfort. It also discusses the interviewing process for management and the powers of securities regulatory authorities. Test your knowledge on effective investigation techniques and compliance issues.

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