Podcast
Questions and Answers
What must the Performance Report provide to clients?
What must the Performance Report provide to clients?
- Technical data on regulatory requirements
- Easy-to-understand information about the cost-adjusted performance return of their investments (correct)
- Detailed information on the current market trends
- Complex information about investment strategies
Who is required to disclose the costs associated with the purchase or sale of a security before the transaction is made?
Who is required to disclose the costs associated with the purchase or sale of a security before the transaction is made?
- Investment analysts only
- Market regulators
- Mutual fund dealers and their Dealing Representatives (correct)
- Investment bankers
Under what model are mutual fund dealers and their Dealing Representatives subject to regulatory requirements?
Under what model are mutual fund dealers and their Dealing Representatives subject to regulatory requirements?
- Investment Growth Model
- Client Relationship Model and Client Focused Reforms (correct)
- Client Satisfaction Model
- Market Performance Model
What specific fees must be disclosed by the Dealing Representatives before a security transaction?
What specific fees must be disclosed by the Dealing Representatives before a security transaction?
How frequently must the Performance Report be issued to clients?
How frequently must the Performance Report be issued to clients?
What is the main focus of the new standard introduced by CRM for pre-trade cost disclosure?
What is the main focus of the new standard introduced by CRM for pre-trade cost disclosure?
Which group is required to provide clients with easy-to-understand information about their investments?
Which group is required to provide clients with easy-to-understand information about their investments?
What do mutual fund dealers and their Dealing Representatives need to comply with?
What do mutual fund dealers and their Dealing Representatives need to comply with?
What is the primary goal of the compliance regime in a mutual fund dealer firm?
What is the primary goal of the compliance regime in a mutual fund dealer firm?
Which of the following is not a prohibited practice in the mutual fund dealer industry?
Which of the following is not a prohibited practice in the mutual fund dealer industry?
What is the role of compliance officers in a mutual fund dealer firm?
What is the role of compliance officers in a mutual fund dealer firm?
What is the relationship between the Compliance Department and the compliance regime in a mutual fund dealer firm?
What is the relationship between the Compliance Department and the compliance regime in a mutual fund dealer firm?
What are the requirements for Client Communications in a mutual fund dealer firm?
What are the requirements for Client Communications in a mutual fund dealer firm?
What is the role of the client relationship model (CRM) and the client focused reforms (CFR) in a mutual fund dealer firm?
What is the role of the client relationship model (CRM) and the client focused reforms (CFR) in a mutual fund dealer firm?
What is the purpose of Relationship Disclosure Information (RDI) in a mutual fund dealer firm?
What is the purpose of Relationship Disclosure Information (RDI) in a mutual fund dealer firm?
What is the objective of effective risk management in a mutual fund dealer firm?
What is the objective of effective risk management in a mutual fund dealer firm?
Which of the following is NOT a prohibited practice for a Dealing Representative?
Which of the following is NOT a prohibited practice for a Dealing Representative?
What is the purpose of excessive trading for a Dealing Representative?
What is the purpose of excessive trading for a Dealing Representative?
Which of the following is NOT a rule governing client communications?
Which of the following is NOT a rule governing client communications?
Which of the following is a requirement for reporting to the MFDA Enforcement Department?
Which of the following is a requirement for reporting to the MFDA Enforcement Department?
What is the main focus of the rules governing client communications?
What is the main focus of the rules governing client communications?
Which of the following is NOT an example of a conduct rule for Dealing Representatives?
Which of the following is NOT an example of a conduct rule for Dealing Representatives?
What is the purpose of supervision by the mutual fund dealer for client communications containing or referring to the rate of return?
What is the purpose of supervision by the mutual fund dealer for client communications containing or referring to the rate of return?
What is the main purpose of the rules governing pre-signed forms?
What is the main purpose of the rules governing pre-signed forms?
Who can a Dealing Representative accept an appointment to have control or authority over their financial affairs from?
Who can a Dealing Representative accept an appointment to have control or authority over their financial affairs from?
What must a Dealing Representative do before accepting or acting upon an appointment to have control or authority over financial affairs?
What must a Dealing Representative do before accepting or acting upon an appointment to have control or authority over financial affairs?
What type of benefits are sometimes used as compensation for inappropriate activities carried on by Dealing Representatives?
What type of benefits are sometimes used as compensation for inappropriate activities carried on by Dealing Representatives?
According to the MFDA rules, what relationship does Justin have with Derek?
According to the MFDA rules, what relationship does Justin have with Derek?
What is the exception permitted under the MFDA rules for accepting an appointment to have control or authority over financial affairs?
What is the exception permitted under the MFDA rules for accepting an appointment to have control or authority over financial affairs?
What is the purpose of obtaining written approval from the dealer before accepting or acting upon an appointment to have control or authority over financial affairs?
What is the purpose of obtaining written approval from the dealer before accepting or acting upon an appointment to have control or authority over financial affairs?
What type of power of attorney did Derek give to Justin over his financial affairs?
What type of power of attorney did Derek give to Justin over his financial affairs?
What is the purpose of the exception permitted under the MFDA rules for accepting an appointment to have control or authority over financial affairs?
What is the purpose of the exception permitted under the MFDA rules for accepting an appointment to have control or authority over financial affairs?
What is the primary function of the Compliance Department in relation to Dealing Representatives?
What is the primary function of the Compliance Department in relation to Dealing Representatives?
Which of the following is not a responsibility of the Compliance Department towards Dealing Representatives?
Which of the following is not a responsibility of the Compliance Department towards Dealing Representatives?
Which legislation primarily governs the Client Relationship Model (CRM)?
Which legislation primarily governs the Client Relationship Model (CRM)?
Which of the following is not a component of the Client Relationship Model (CRM)?
Which of the following is not a component of the Client Relationship Model (CRM)?
Which of the following is not an aspect addressed by the Client Focused Reforms (CFR)?
Which of the following is not an aspect addressed by the Client Focused Reforms (CFR)?
What is the primary role of the Compliance Department in supporting Dealing Representatives?
What is the primary role of the Compliance Department in supporting Dealing Representatives?
Which of the following is not a function of the Compliance Department in relation to Dealing Representatives?
Which of the following is not a function of the Compliance Department in relation to Dealing Representatives?
Which of the following is not governed by the Client Relationship Model (CRM)?
Which of the following is not governed by the Client Relationship Model (CRM)?
