SRO-Regulated Firms in Canada

What is the maximum coverage provided by the MFDA Investor Protection Corporation for general accounts?

$500,000
$100,000
$2 million
$1 million (correct)

On what grounds can the MFDA enforce rules against its members?

Through a non-transparent disciplinary process
By providing legal advice
By conducting tax audits
By initiating compliance reviews (correct)

What is the primary function of the Ombudsman for Banking Services and Investments (OBSI)?

To provide financial advice
To conduct market research
To regulate investment firms
To resolve disputes between firms and clients (correct)

What is the maximum amount up to which OBSI can recommend settlement claims?

$500,000 (A) Signup and view all the answers

Which entity provides coverage for eligible customer losses due to a MFDA Member's insolvency?

MFDA Investor Protection Corporation (IPC) (C) Signup and view all the answers

Who funds the MFDA Investor Protection Corporation?

Contributions from MFDA Members (D) Signup and view all the answers

What is the purpose of the transparent disciplinary process conducted by the MFDA?

To impose fines and suspensions on members for non-compliance (C) Signup and view all the answers

What is the primary role of FINTRAC in Canada?

To prevent money laundering and terrorist financing (D) Signup and view all the answers

According to Canadian law, what constitutes money laundering?

Transforming illegally obtained money into legitimate sources (D) Signup and view all the answers

What is a common method of money laundering mentioned in the text?

Purchasing real estate properties with illicit funds (B) Signup and view all the answers

How does terrorist financing differ from money laundering?

Terrorist financing supports illegal activities (B) Signup and view all the answers

Which entities are among those monitored by FINTRAC in Canada?

Money service businesses (A) Signup and view all the answers

What is the main objective of money laundering?

To make illicit funds untraceable and merge them with legitimate assets (D) Signup and view all the answers

How does FINTRAC contribute to public safety in Canada?

By analyzing information to detect and deter money laundering and terrorist financing (D) Signup and view all the answers

What happens when dirty money enters the financial system?

It is held in cash accounts and may be laundered by purchasing securities (D) Signup and view all the answers

What type of information is considered 'personal information' under PIPEDA?

Opinions and evaluations (C) Signup and view all the answers

Which of the following is NOT part of a typical definition of personal information under PIPEDA?

Telephone number (D) Signup and view all the answers

What is the main purpose of the National Do Not Call List (DNCL) according to the text?

To allow consumers to choose whether to receive telemarketing calls (C) Signup and view all the answers

What is considered telemarketing according to the text?

Unsolicited telecommunications to promote services (D) Signup and view all the answers

According to PIPEDA, which of the following is not considered personal information?

Employee's name (B) Signup and view all the answers

What actions are organizations regulated by PIPEDA permitted to take with personal information?

Collect and disclose personal information as required (B) Signup and view all the answers

What are the two main types of SRO-regulated firms mentioned in the text?

Investment dealers and mutual fund dealers (B) Signup and view all the answers

If a phone number is listed on the National Do Not Call List (DNCL), what should telemarketers do?

Avoid calling the number for telemarketing purposes without permission (B) Signup and view all the answers

What does IIROC stand for in the context of the text?

Investment Industry Regulatory Organization of Canada (C) Signup and view all the answers

What is the primary role of the Securities Regulator as mentioned in the text?

Regulating the buying and selling of securities (A) Signup and view all the answers

What is the responsibility of the Canadian Securities Administrators (CSA) as highlighted in the text?

Reviewing and approving mutual funds before sale (A) Signup and view all the answers

What is the key obligation of a Dealing Representative according to the text?

Following the rules of the Securities Regulator (A) Signup and view all the answers

What type of complaints do Securities Regulators investigate as per the text?

Investor complaints against companies and their employees (D) Signup and view all the answers

Apart from mutual funds, what else do Securities Regulators review and approve before they are offered for sale?

New issue prospectuses (C) Signup and view all the answers

What does MFDA stand for in relation to SRO-regulated firms?

Mutual Fund Dealers Association of Canada (D) Signup and view all the answers

What is the primary purpose of a Commercial Electronic Message (CEM)?

To encourage participation in a commercial activity (A) Signup and view all the answers

According to CASL, what must be included in a CEM?

Information that identifies the sender (C) Signup and view all the answers

What is a requirement for sending CEMs under CASL?

Recipient's approval for receiving messages (C) Signup and view all the answers

What action must a CEM enable the recipient to do?

Withdraw consent and unsubscribe (C) Signup and view all the answers

According to CASL, what option must organizations provide to consumers regarding unsubscribing from messages?

Option to unsubscribe from all future messages (A) Signup and view all the answers

What is prohibited by CASL regarding sending CEMs?

Sending messages without a request for consent (C) Signup and view all the answers

What is the consequence of not including sender identification in a CEM according to CASL?

Legal action against the sender (D) Signup and view all the answers

Under CASL, what is the significance of recipient consent for sending CEMs?

An essential requirement before sending messages (A) Signup and view all the answers