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Questions and Answers
What is the recommended minimum time to spend preparing for the exam?
What is the recommended minimum time to spend preparing for the exam?
What percentage of your grade is the final exam worth?
What percentage of your grade is the final exam worth?
What is the passing mark percentage required for the final exam?
What is the passing mark percentage required for the final exam?
Where can you find the online exercises to reinforce concepts for each unit?
Where can you find the online exercises to reinforce concepts for each unit?
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What type of exam is the final exam?
What type of exam is the final exam?
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What can potentially lead to conflicts of interest for a registrant engaged in dual occupations and outside activities?
What can potentially lead to conflicts of interest for a registrant engaged in dual occupations and outside activities?
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What should a registered firm and Dealing Representative do if they encounter a conflict of interest not included in the provided list?
What should a registered firm and Dealing Representative do if they encounter a conflict of interest not included in the provided list?
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Where would the steps for addressing a conflict of interest most often be established?
Where would the steps for addressing a conflict of interest most often be established?
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Why is it essential for registrants to be transparent about their dual occupations and outside activities?
Why is it essential for registrants to be transparent about their dual occupations and outside activities?
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What would be required if a conflict of interest arises for a registered firm and Dealing Representative?
What would be required if a conflict of interest arises for a registered firm and Dealing Representative?
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What distinguishes Tom's action from Peter's action?
What distinguishes Tom's action from Peter's action?
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In the scenario of Marianne and her client's cheque, what did Marianne do wrong?
In the scenario of Marianne and her client's cheque, what did Marianne do wrong?
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What consequences must the mutual fund dealer face in Example 2 according to the text?
What consequences must the mutual fund dealer face in Example 2 according to the text?
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Which term best describes Tom's actions in using his office computer?
Which term best describes Tom's actions in using his office computer?
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What differentiates Example 2 from Example 1 in terms of ethical standards?
What differentiates Example 2 from Example 1 in terms of ethical standards?
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What legislation is responsible for protecting personal information for federally regulated private sector organizations in Canada?
What legislation is responsible for protecting personal information for federally regulated private sector organizations in Canada?
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Which law gives individuals the right to access and request correction of their personal information held by federal government departments and agencies?
Which law gives individuals the right to access and request correction of their personal information held by federal government departments and agencies?
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In Canada, which provinces are exempt from having PIPEDA apply due to their own similar legislation?
In Canada, which provinces are exempt from having PIPEDA apply due to their own similar legislation?
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What type of organizations are covered by the Privacy Act in Canada?
What type of organizations are covered by the Privacy Act in Canada?
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Which Canadian law limits the collection, use, and disclosure of personal information by federal government departments and agencies?
Which Canadian law limits the collection, use, and disclosure of personal information by federal government departments and agencies?
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What is the main topic of Unit 2, Lesson 3 in Registrant Responsibilities?
What is the main topic of Unit 2, Lesson 3 in Registrant Responsibilities?
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How long does it take to complete the lesson on conflicts of interest?
How long does it take to complete the lesson on conflicts of interest?
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What is the primary duty of all registrants in the Canadian capital markets according to the text?
What is the primary duty of all registrants in the Canadian capital markets according to the text?
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Which of the following is NOT one of the criteria to be considered when determining whether a conflict is material?
Which of the following is NOT one of the criteria to be considered when determining whether a conflict is material?
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Why is it important for registrants to provide an overview of common conflicts of interest?
Why is it important for registrants to provide an overview of common conflicts of interest?
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What is the consequence if you are unable to identify an individual at the time of opening an account?
What is the consequence if you are unable to identify an individual at the time of opening an account?
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What action should be taken if a client is evasive or unwilling to provide sufficient information for adequate identification?
What action should be taken if a client is evasive or unwilling to provide sufficient information for adequate identification?
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Who are considered Politically Exposed Foreign Persons according to the text?
Who are considered Politically Exposed Foreign Persons according to the text?
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What changes came into force in June 2020 regarding identification requirements?
What changes came into force in June 2020 regarding identification requirements?
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What is the protocol in Québec regarding health cards and identification purposes?
What is the protocol in Québec regarding health cards and identification purposes?
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What action should be taken if a dealing representative is prohibited from entering into a private settlement with a client?
What action should be taken if a dealing representative is prohibited from entering into a private settlement with a client?
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In what scenarios would private investment schemes be considered permissible?
In what scenarios would private investment schemes be considered permissible?
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What consequence might a dealing representative face if they fail to disclose their leadership role in the community to their firm?
What consequence might a dealing representative face if they fail to disclose their leadership role in the community to their firm?
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Which of the following actions is prohibited regarding non-monetary benefits between a dealing representative and a client?
Which of the following actions is prohibited regarding non-monetary benefits between a dealing representative and a client?
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What is the appropriate course of action when a dealing representative and a client wish to invest together?
What is the appropriate course of action when a dealing representative and a client wish to invest together?
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How should monetary or non-monetary benefits between dealing representatives and clients be handled?
How should monetary or non-monetary benefits between dealing representatives and clients be handled?
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What type of investments are considered prohibited for co-investment by dealing representatives and clients?
What type of investments are considered prohibited for co-investment by dealing representatives and clients?
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Why do dealing representatives need to avoid conflicts of interest related to significant assets?
Why do dealing representatives need to avoid conflicts of interest related to significant assets?
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What is required for monetary or non-monetary benefits exchanged between dealing representatives and clients?
What is required for monetary or non-monetary benefits exchanged between dealing representatives and clients?
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What should a dealing representative do if they occupy a leadership role in the community?
What should a dealing representative do if they occupy a leadership role in the community?
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Study Notes
Preparing for the Exam
- Spend at least 90 hours preparing for the exam
- Suggested approach: read the unit carefully, try online exercises, complete quizzes, and complete the sample exam
Course Access
- Go to www.ifse.ca and login with your user name and password
- Click on "Launch this course" under "My IFSE > Courses > Canadian Investment Funds Course"
Unit 1: Regulatory Environment
- Multiple regulatory bodies and regulations govern the sale of mutual funds in Canada
- Dealing Representatives need to be aware of these bodies and regulations
- Final exam: 100 multiple-choice questions, 3 hours, 100% of the grade, and a minimum mark of 60% to pass
Unit 2: Registrant Responsibilities
- Common conflicts of interest: dual occupations and outside activities, gifts, gratuities, and non-monetary benefits
- Conflicts of interest may arise from compensation, position of influence, or gifts received from clients
- Firm and Dealing Representatives must address conflicts of interest in the best interest of the client
Unethical Actions
- Unethical actions may not be regulatory breaches, but are still unethical
- Example: using office computers for personal internet use during lunch breaks
- Example: misappropriating client funds, which is both unethical and illegal
Privacy Legislation
- Collecting personal information: duty to keep it confidential, protected by legislation
- Privacy Act: federal government departments and agencies, limits collection, use, and disclosure of personal information
- Personal Information Protection and Electronic Documents Act (PIPEDA): private sector, rules for collecting, using, or disclosing personal information
Conflicts of Interest
- Introduction: conflicts of interest, identifying and managing conflicts
- Lesson objectives: provide overview, define conflict, discuss criteria for material conflicts, and address conflicts
- Time: approximately 1 hour to complete
Conflicts of Interest (continued)
- All registrants in the Canadian capital markets have a duty to identify and address conflicts of interest
- Documents may be Canadian or foreign equivalents
- Note: Health Cards from Ontario, Manitoba, and PEI are not allowed for identification purposes
- Identifying Politically Exposed Foreign Persons: individuals holding certain positions in a foreign country
Identification Requirements
- Changes to identification requirements: include Politically Exposed Persons (PEPs), domestic and foreign, and Heads of International Organizations (HIOs)
- Changes will be reflected in the next version of the course
Material Conflicts of Interest
- Real property or other assets of significant value: material conflict of interest that should be avoided
- Private investment schemes: prohibited, include investment clubs, co-investment, and pyramid-like schemes
- Private settlements: prohibited, must go through the dealer
Personal Financial Dealings
- Monetary or non-monetary benefits: cannot flow directly or indirectly to or from Dealing Representatives and clients
- All benefits must be approved by the dealer and flow through the dealer
- Positions of influence: must disclose role to the firm, and regulator may impose terms and conditions to restrict dealing with clients related to the role
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Description
Test your knowledge on common conflicts of interest related to dual occupations, outside activities, gifts, gratuities, non-monetary benefits, and positions of influence in the financial services industry. Find out how these factors can impact relationships with clients.
