Canadian Securities Institute - Check: Section 1 Quiz PDF

## Canadian Securities Institute - Check: Section 1 Quiz Reports ### Overall Results | Attempt | Questions | Number Correct | Your Score | |---|---|---|---| | 1 | 10 | 10 | 100% | You have passed the test. ### Chapter Results | Chapter | Questions | Number Correct | Your Score | |---|---|---|...

## Canadian Securities Institute - Check: Section 1 Quiz Reports ### Overall Results | Attempt | Questions | Number Correct | Your Score | |---|---|---|---| | 1 | 10 | 10 | 100% | You have passed the test. ### Chapter Results | Chapter | Questions | Number Correct | Your Score | |---|---|---|---| | Chapter 1: The Role of the Branch Compliance Officer | 10 | 10 | 100% | ### Question Results 1. What is the purpose of regular training and briefing sessions? Good choice! - To ensure that internal control systems are functioning properly. Feedback: Regular training and briefing sessions provide an opportunity for BCOs to review important disclosure, sales communications, compliance, and behavior issues and to check whether internal control systems are functioning properly. Reference: Chapter 1: The Role of the Branch Compliance Officer 2. Which activity is a compliance responsibility for a branch compliance officer? Good choice! - Ensuring that sales representatives comply with the dealer's policies and procedures. Feedback: As part of their compliance responsibilities, BCOs must ensure that all sales representatives comply with their dealers' policies and procedures, which should reflect applicable legal and regulatory requirements. Reference: Chapter 1: The Role of the Branch Compliance Officer 3. Miles, a branch compliance officer must attend a training session and must delegate his responsibilities to Jean, a qualified alternate BCO. During Miles' absence, head office discovers that a supervisory task was completed incorrectly. Who is responsible for the consequences of the violation? Good choice! - Miles, the BCO. Feedback: Although tasks may be delegated, the responsibility cannot be. Miles, as BCO, is ultimately responsible for ensuring that the supervisory task is completed correctly. Reference: Chapter 1: The Role of the Branch Compliance Officer 4. Whose responsibility is it to ensure that the branch's accounting and recordkeeping systems are functioning properly and are adequately maintained? Good choice! - The branch compliance officer. Feedback: The accounting, audit, and communication systems are normally installed or designed by the head office of the financial institution or mutual fund dealer. It is the BCO's job to ensure that they are functioning properly and are adequately maintained. Accounting and recordkeeping systems, audit systems, audit trails, mail, communication systems, and electronic data processing systems all fall into this category. Reference: Chapter 1: The Role of the Branch Compliance Officer 5. Who do branch compliance officers report to about their compliance responsibilities? Good choice! - Regional compliance officer. Feedback: Branch compliance officers must report to and assist the RCOs regarding their compliance responsibilities. Reference: Chapter 1: The Role of the Branch Compliance Officer 6. Sabitha, a branch compliance officer, reviews the layout of a newly opened mutual fund office within a bank's branch. She notes that the mutual fund office has signage for the mutual fund company and that business cards have been printed with the mutual fund company's name. What is Sabitha now required to do to meet regulatory requirements for this office? Good choice! - Make sure that sales representatives understand their obligation to explain the differences between the two affiliated institutions to their clients. Feedback: BCOs and registered sales representatives must ensure that clients are aware of the identity of the dealer they are dealing with. In addition to items such as clear signage and business cards, clients must be advised in writing that the two entities (the bank and the dealer) are separate institutions, and they must sign the written disclosure acknowledging that they understand the nature of the relationship. Reference: Chapter 1: The Role of the Branch Compliance Officer 7. How can a branch compliance officer ensure that clients who are purchasing mutual funds from a dealer who operates within the branch of a financial institution know they are purchasing from the dealer and not the financial institution? Good choice! - By disclosing the information in writing and having the client acknowledge in writing that they read the disclosure. Feedback: To ensure that the clients understand, they must be advised in writing and must acknowledge having read the written disclosure. Reliance on signage and printed matter alone is not enough to validate the client's understanding, although it is strongly recommended that these items also be present and visible. Reference: Chapter 1: The Role of the Branch Compliance Officer 8. Which topic is an example of one the branch compliance officer should regularly review in briefing sessions with sales representatives? Good choice! - Forward pricing of mutual funds. Feedback: One of the reasons the BCO should hold regular briefing sessions is to address important topics such as ensuring an understanding of forward pricing. Reference: Chapter 1: The Role of the Branch Compliance Officer 9. Which topic is typically covered during sales staff training sessions organized or provided by the branch compliance officer? Good choice! - Collecting and transmitting orders. Feedback: Order taking is a topic that is typically discussed during sales staff training sessions organized or given by the BCO. Reference: Chapter 1: The Role of the Branch Compliance Officer 10. Which change is considered a material change in client information? Good choice! - A change of securities in the account. Feedback: It is important to take note of new securities deposited into a client's account. Such an occurrence would be considered a material change of client information. Reference: Chapter 1: The Role of the Branch Compliance Officer