Podcast
Questions and Answers
What type of investments fall under the medium risk rating?
What type of investments fall under the medium risk rating?
- Blue chip and mid cap equities (correct)
- Investments in smaller companies
- Investments with high volatility
- Fixed income investments
Which risk rating applies to growth-oriented investors willing to accept significant short-term fluctuations?
Which risk rating applies to growth-oriented investors willing to accept significant short-term fluctuations?
- Low-Medium
- Medium
- Medium-High
- High (correct)
Investments under which risk rating include those that invest in smaller companies?
Investments under which risk rating include those that invest in smaller companies?
- High
- Medium-High (correct)
- Medium
- Low-Medium
Which risk rating applies to investors seeking moderate growth over a longer period of time?
Which risk rating applies to investors seeking moderate growth over a longer period of time?
What type of investors does the medium-high risk rating apply to?
What type of investors does the medium-high risk rating apply to?
Which investments are characteristic of the low-medium risk rating?
Which investments are characteristic of the low-medium risk rating?
For which risk rating are investors willing to accept significant short-term fluctuations for potentially higher returns?
For which risk rating are investors willing to accept significant short-term fluctuations for potentially higher returns?
Who is ultimately responsible for reviewing and updating KYC information for clients?
Who is ultimately responsible for reviewing and updating KYC information for clients?
What happens if the information on the KYC Form appears unreasonable given the client's circumstances?
What happens if the information on the KYC Form appears unreasonable given the client's circumstances?
Who should review and approve the NCAF/KYC Form?
Who should review and approve the NCAF/KYC Form?
What must be completed for each new client account that is opened?
What must be completed for each new client account that is opened?
What is the purpose of the KYC Form during disputes?
What is the purpose of the KYC Form during disputes?
Who should receive a signed copy of the NCAF/KYC Form?
Who should receive a signed copy of the NCAF/KYC Form?
What is the purpose of the KYC process?
What is the purpose of the KYC process?
What are some examples of investments under the high risk rating?
What are some examples of investments under the high risk rating?
What type of funds may invest in derivatives, engage in short selling, or use leverage?
What type of funds may invest in derivatives, engage in short selling, or use leverage?
Why is it important for advisors to resist assessing a higher risk profile than necessary even when a client desires higher returns?
Why is it important for advisors to resist assessing a higher risk profile than necessary even when a client desires higher returns?
In what form are risk profiles often expressed?
In what form are risk profiles often expressed?
Which of the following investments would most likely be classified under a high risk rating?
Which of the following investments would most likely be classified under a high risk rating?
What should advisors do when a client's desire for returns does not align with their risk profile?
What should advisors do when a client's desire for returns does not align with their risk profile?
Why do higher expected returns usually come with higher risk?
Why do higher expected returns usually come with higher risk?
What guideline advises advisors against assessing higher risk profiles solely to meet client return expectations?
What guideline advises advisors against assessing higher risk profiles solely to meet client return expectations?
Which of the following terms describes funds investing in emerging markets, science and technology, and precious metals?
Which of the following terms describes funds investing in emerging markets, science and technology, and precious metals?
What is the primary reason advisors are advised to resist assessing higher risk profiles than necessary?
What is the primary reason advisors are advised to resist assessing higher risk profiles than necessary?
What is the primary concern for the Dealing Representative when an investor wishes to purchase high-risk speculative investments?
What is the primary concern for the Dealing Representative when an investor wishes to purchase high-risk speculative investments?
What does determining a client's liquidity needs involve?
What does determining a client's liquidity needs involve?
What are the reasons for determining if a client will use leverage or borrow to invest?
What are the reasons for determining if a client will use leverage or borrow to invest?
What are the factors that a Dealing Representative must consider when assessing whether a client can tolerate potential losses from a high-risk investment?
What are the factors that a Dealing Representative must consider when assessing whether a client can tolerate potential losses from a high-risk investment?
What is the primary role of a Dealing Representative when advising a client on investments?
What is the primary role of a Dealing Representative when advising a client on investments?
What is the purpose of determining a client's liquidity needs?
What is the purpose of determining a client's liquidity needs?
What is the primary concern when a client wishes to use leverage or borrow to invest?
What is the primary concern when a client wishes to use leverage or borrow to invest?
What is the primary purpose of setting out investment goals for a client's account or portfolio?
What is the primary purpose of setting out investment goals for a client's account or portfolio?
What should investment goals be set out in, according to the CP 31-103?
What should investment goals be set out in, according to the CP 31-103?
What is an example of a client's investment need or objective?
What is an example of a client's investment need or objective?
What should a registrant consider setting out, according to the CP 31-103?
What should a registrant consider setting out, according to the CP 31-103?
What is the purpose of an investment policy statement, according to the CP 31-103?
What is the purpose of an investment policy statement, according to the CP 31-103?
Why is it important to set out investment goals in specific and measurable terms?
Why is it important to set out investment goals in specific and measurable terms?
What should a registrant provide clients with, according to the CP 31-103?
What should a registrant provide clients with, according to the CP 31-103?
