Podcast
Questions and Answers
What is the difference between compliance and ethics?
What is the difference between compliance and ethics?
- Compliance and ethics are essentially the same and can be used interchangeably
- Compliance is guided by internal policies, while ethics are regulated by national organizations
- Compliance involves ethical behavior, while ethics involve following prescribed conduct
- Compliance involves following rules, while ethics guide behavior when rules are unclear or contradictory (correct)
What is the primary responsibility of Registered Representatives (RRs) to their clients?
What is the primary responsibility of Registered Representatives (RRs) to their clients?
- To prioritize their own interests over client interests
- To put client interests ahead of their own (correct)
- To maximize their own profits at the expense of clients
- To strictly comply with internal policies and regulations
What does the Canadian Investment Regulatory Organization (CIRO) require of its Registered Representatives (RRs)?
What does the Canadian Investment Regulatory Organization (CIRO) require of its Registered Representatives (RRs)?
- Maximize profits for themselves regardless of the impact on clients
- Observe high standards of ethics and conduct (correct)
- Strictly follow internal policies and regulations
- Act unethically as long as it complies with the rules
Why is it possible to act unethically while still strictly complying with the rules?
Why is it possible to act unethically while still strictly complying with the rules?
What is the ethical requirement for understanding a client's situation known as?
What is the ethical requirement for understanding a client's situation known as?
Which factors contribute to the suitability of investment recommendations?
Which factors contribute to the suitability of investment recommendations?
What must RRs determine before taking any action on behalf of a retail client?
What must RRs determine before taking any action on behalf of a retail client?
What does the ethical obligation of RRs to act honestly and in good faith ensure?
What does the ethical obligation of RRs to act honestly and in good faith ensure?
What is the definition of ethics?
What is the definition of ethics?
How does ethical behavior differ from regulatory compliance?
How does ethical behavior differ from regulatory compliance?
What is the responsibility of a dealer member’s representatives in their dealings with clients?
What is the responsibility of a dealer member’s representatives in their dealings with clients?
Why is it important for individuals to make decisions within the context of moral principles?
Why is it important for individuals to make decisions within the context of moral principles?
What is the responsibility of the RR during the discovery process?
What is the responsibility of the RR during the discovery process?
Why is it important for an RR to understand investment products before recommending them to clients?
Why is it important for an RR to understand investment products before recommending them to clients?
What does the Duty of Care require from an RR?
What does the Duty of Care require from an RR?
Why should the account application be kept continually up to date?
Why should the account application be kept continually up to date?
What did Tom discover when he opened his father's mail?
What did Tom discover when he opened his father's mail?
What are Ketty's violations based on the scenario?
What are Ketty's violations based on the scenario?
What responsibility does the dealer member bear in this scenario?
What responsibility does the dealer member bear in this scenario?
What is the primary focus of an RR's duty of care according to the suggested conduct for compliance?
What is the primary focus of an RR's duty of care according to the suggested conduct for compliance?
What is the primary ethical obligation of Registered Representatives (RRs) when making investment recommendations?
What is the primary ethical obligation of Registered Representatives (RRs) when making investment recommendations?
What is the Know Your Client (KYC) rule primarily concerned with?
What is the Know Your Client (KYC) rule primarily concerned with?
What must RRs determine before taking any action on behalf of a retail client?
What must RRs determine before taking any action on behalf of a retail client?
What is the purpose of the discovery process for RRs?
What is the purpose of the discovery process for RRs?
What is the duty of care for Registered Representatives (RRs) in their advice to clients?
What is the duty of care for Registered Representatives (RRs) in their advice to clients?
What is the primary focus of the Know Your Product (KYP) obligation for Registered Representatives (RRs)?
What is the primary focus of the Know Your Product (KYP) obligation for Registered Representatives (RRs)?
Why is it essential for Registered Representatives (RRs) to continually update account applications?
Why is it essential for Registered Representatives (RRs) to continually update account applications?
What is the responsibility of Registered Representatives (RRs) during the discovery process with clients?
What is the responsibility of Registered Representatives (RRs) during the discovery process with clients?
What is the primary consideration in determining whether a client was owed a fiduciary duty in a given situation?
What is the primary consideration in determining whether a client was owed a fiduciary duty in a given situation?
Which of the following is NOT a rule of thumb that Registered Representatives (RRs) must observe according to the text?
Which of the following is NOT a rule of thumb that Registered Representatives (RRs) must observe according to the text?
What is the main purpose of the guidelines provided for RRs?
What is the main purpose of the guidelines provided for RRs?
What is the significance of the absence of a formal code of ethics in the securities industry according to the text?
What is the significance of the absence of a formal code of ethics in the securities industry according to the text?
