National Instruments NI 31-103 and NI 81-102 Quiz
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Questions and Answers

What are the three broad principles of regulation based on the securities acts?

  • Disclosure of irrelevant information, registration of securities dealers, and enforcement of tax laws
  • Limiting the number of securities dealers and advisors
  • Providing tax exemptions, enforcing securities laws, and disclosure of relevant information
  • Disclosure of relevant information, registration of securities dealers, and enforcement of securities laws (correct)
  • What is the difference between a National Instrument (NI) and a Multilateral Instrument (MI)?

  • NI is for large companies, while MI is for small companies
  • NI is related to securities disclosure, while MI is related to tax regulations
  • NI is adopted by all CSA jurisdictions, while MI is adopted by one or more CSA jurisdictions (correct)
  • NI is for domestic companies, while MI is for international companies
  • Who administers the applicable Act in most provinces?

  • Provincial securities commissions (correct)
  • The Canadian Securities Administrators (CSA)
  • International securities regulators
  • The federal government
  • What type of disclosure is required for the primary distribution of securities?

    <p>Filing an approved prospectus with the relevant securities commission</p> Signup and view all the answers

    Who must provide the approved prospectus to investors during a primary distribution of securities?

    <p>The issuer of the securities</p> Signup and view all the answers

    When is a prospectus required for sales of previously issued securities?

    <p>When there is significant influence over the company whose shares are being sold</p> Signup and view all the answers

    What does registration of securities dealers and advisors allow the Administrators to do?

    <p>Impose proficiency requirements upon those applying for or holding registration</p> Signup and view all the answers

    What is the mission of the Canadian Securities Administrators (CSA)?

    <p>To protect investors from unfair, improper, or fraudulent practices</p> Signup and view all the answers

    What does the Alberta Securities Commission regulate?

    <p>Securities market in Alberta</p> Signup and view all the answers

    What are National Instruments in the context of Canadian securities regulation?

    <p>Instruments adopted in all thirteen Canadian provinces and territories</p> Signup and view all the answers

    What is the role of the Autorité des marchés financiers (AMF) in Quebec?

    <p>To oversee or administer the securities market in Quebec</p> Signup and view all the answers

    What legislation has been passed by each province to regulate the primary and secondary distribution of securities?

    <p>Securities legislation</p> Signup and view all the answers

    Which organization is responsible for investigating and prosecuting securities regulation violations?

    <p>The Canadian Securities Administrators (CSA)</p> Signup and view all the answers

    Which organization deals with business conduct, financial compliance, and trade conduct compliance in the securities industry?

    <p>Investment Industry Regulatory Organization of Canada (IIROC)</p> Signup and view all the answers

    Who is responsible for dealing with money laundering and terrorist financing in the securities industry?

    <p>Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)</p> Signup and view all the answers

    Which organization ensures protection for depositors in the securities industry?

    <p>Canada Deposit Insurance Corporation (CDIC)</p> Signup and view all the answers

    What is the purpose of the Canadian Investor Protection Fund (CIPF)?

    <p>Protecting investors against member insolvency</p> Signup and view all the answers

    What is the purpose of the Passport System in Canadian provinces and territories?

    <p>To reduce unnecessary duplication in the review of filings made in multiple jurisdictions</p> Signup and view all the answers

    Which database includes all mandatory regulatory filings in Canada?

    <p>SEDAR</p> Signup and view all the answers

    What are the objectives of the North American Securities Administrators Association (NASAA)?

    <p>Investor protection, maintaining market integrity, and promoting the enforcement of securities laws</p> Signup and view all the answers

    What does the International Organization of Securities Commissions (IOSCO) regulate?

    <p>More than 95% of the world’s securities markets</p> Signup and view all the answers

    What is the main purpose of the securities acts based on the text?

    <p>To ensure disclosure of facts necessary for investors to make informed decisions</p> Signup and view all the answers

    What is the difference between a National Instrument (NI) and a Multilateral Instrument (MI) as per the text?

    <p>NI is adopted by all CSA jurisdictions, while MI is adopted by only some provinces</p> Signup and view all the answers

    How are securities activities regulated within different provinces based on the text?

    <p>Through independently established securities commissions within each province</p> Signup and view all the answers

    What is the 'spin cycle' in the context of money laundering?

    <p>A stage designed to obscure the audit trail and original source of funds</p> Signup and view all the answers

    How does the securities industry benefit from a money laundering perspective?

    <p>Ease of trading and ability to perform transactions across borders</p> Signup and view all the answers

    What is the definition of a shell company according to IIROC RULE 1300.1?

    <p>A business without substance or commercial purpose and incorporated to conceal the true beneficial ownership</p> Signup and view all the answers

    Why is the securities industry more at risk during the layering stage of money laundering?

    <p>Funds can easily change form into entirely different assets</p> Signup and view all the answers

    Who is responsible for the supervision and regulation of banks, insurance companies, and trust and loan companies?

    <p>The Office of the Superintendent of Financial Institutions (OSFI)</p> Signup and view all the answers

    What is required for financial services providers according to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act?

    <p>Establishing record keeping and client identification requirements</p> Signup and view all the answers

    Who must send a suspicious transaction report to FINTRAC within 30 days when there are reasonable grounds to suspect a money laundering offence?

    <p>Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)</p> Signup and view all the answers

    What is required before any transactions are conducted in an account according to the regulations?

    <p>Verification of the identity of an individual opening an account</p> Signup and view all the answers

    Which institution is responsible for investigating and prosecuting money laundering and terrorist activity financing offences?

    <p>The Proceeds of Crime (Money Laundering) and Terrorist Financing Act</p> Signup and view all the answers

    What does Subsection (i) not apply to according to the text?

    <p>Banks maintaining physical presence in Canada</p> Signup and view all the answers

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