Regulation of Mutual Funds Industry in Canada
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Questions and Answers

What is the mandate of Securities Regulators?

  • Promote unfair and improper practices
  • Increase systemic risk
  • Protect investors from fraudulent practices (correct)
  • Reduce confidence in capital markets

    • Which organization administers the jurisdiction's Securities Act or equivalent legislation?

  • Securities Regulator (correct)
  • Ombudsman for Banking Services and Investments (OBSI)
  • Investment Industry Regulatory Organization of Canada (IIROC)
  • Mutual Fund Dealers Association of Canada (MFDA)

    • What differs in regulatory requirements for firms regulated by provincial securities regulators versus self-regulatory organizations (SROs)?

  • The protection against fraudulent practices
  • The promotion of unfair practices
  • The extension to non-securities related investment products (correct)
  • The confidence in capital markets

    • What is the primary goal of securities regulation by Securities Regulators?

    <p>Promote confidence in capital markets</p> Signup and view all the answers

    Which organization has the power to grant or revoke registrations for mutual fund dealers?

    <p>Mutual Fund Dealers Association of Canada (MFDA)</p> Signup and view all the answers

    What is the role of Canadian Securities Administrators (CSA) in the Mutual Funds industry?

    <p>Administering Securities Act</p> Signup and view all the answers

    What sets its own standards for registration in the mutual funds industry?

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

    What is NOT extended to related investment products for firms registered with provincial securities regulators?

    <p>Protection against fraudulent practices</p> Signup and view all the answers

    What is the main objective of IIROC?

    <p>To enforce regulatory compliance in its membership</p> Signup and view all the answers

    Which organization does not fall under the supervision of OSFI in Canada?

    <p>Investment dealers</p> Signup and view all the answers

    What are the main functions of the CSF empowered by the AMF in Quebec?

    <p>Enforce rules through a disciplinary process</p> Signup and view all the answers

    Which organization is responsible for liaising with provincial securities commissions and other financial institutions?

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

    What does IIROC focus on regarding the investing public?

    <p>Encouraging high practice standards</p> Signup and view all the answers

    Which of the following is NOT within IIROC's principal activities?

    <p>Regulation of federal insurance companies</p> Signup and view all the answers

    OSFI in Canada regulates which of the following?

    <p>Federally regulated private pension plans</p> Signup and view all the answers

    Who is responsible for overseeing the training and ethics of Québec representatives dealing in investment funds that are not under IIROC supervision?

    <p>Chambre de la sécurité financière (CSF)</p> Signup and view all the answers

    Which body is recognized as the SRO for investment dealers in Québec?

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

    What is the mission of Chambre de la sécurité financière (CSF)?

    <p>To oversee the training and ethics of members dealing in investment funds</p> Signup and view all the answers

    In which province is registration for financial planning activities required?

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

    Which body has the responsibility for ongoing regulatory compliance and continuing education requirements for mutual fund dealers operating in Québec?

    <p>Autorité de marchés financiers (AMF)</p> Signup and view all the answers

    What does OBSI provide as an alternative to the legal system?

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

    Which province has two monitoring bodies regulating securities?

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

    Which entity is responsible for regulating mutual fund dealers operating in Québec?

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

    What is the primary role of FINTRAC in Canada?

    <p>Detecting and preventing money laundering and terrorist financing</p> Signup and view all the answers

    Which of the following entities is NOT mentioned as being monitored by FINTRAC in Canada?

    <p>Healthcare providers</p> Signup and view all the answers

    What is the main objective of money laundering as defined under Canadian law?

    <p>To disguise the source of money derived from criminal activity</p> Signup and view all the answers

    How does a common money laundering method involve using illegal money in the financial system?

    <p>By purchasing securities</p> Signup and view all the answers

    What is the aim of terrorist financing?

    <p>Providing funds for terrorist activity</p> Signup and view all the answers

    What is one way in which dirty money from criminal activities is transformed into clean money?

    <p>Difficult to trace its criminal origin and integrate it into the legitimate economy</p> Signup and view all the answers

    Which organization is described as Canada's financial intelligence unit in the provided text?

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

    What is the main objective of FINTRAC as stated in the text?

    <p>Contributing to public safety by detecting and deterring money laundering and terrorist financing</p> Signup and view all the answers

    What are the two primary sources of financing for terrorist activities mentioned in the text?

    <p>Countries, organizations, or individuals</p> Signup and view all the answers

    What is one of the key responsibilities of a Dealing Representative under the PCMLTFA?

    <p>Identifying politically exposed foreign persons</p> Signup and view all the answers

    How do terrorist groups generate funds from illegal sources?

    <p>Revenue-generating activities</p> Signup and view all the answers

    What legislation was revised in June 2020 regarding terrorist financing?

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

    What is a critical similarity between the funding methods of criminal organizations and terrorist groups?

    <p>Generating funds from illegal sources</p> Signup and view all the answers

    What does FINTRAC stand for?

    <p>Financial Transactions Analysis Centre</p> Signup and view all the answers

    In which of the following areas does a Dealing Representative NOT have a responsibility under the PCMLTFA?

    <p>Compliance with tax regulations</p> Signup and view all the answers

    Why do terrorist groups need to find ways to launder illicit funds?

    <p>To use funds without attracting attention from authorities</p> Signup and view all the answers

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