CIFC Exam with Complete Solutions

Explain how the securities regulation is structured in Canada? - ANSWER-Security Regulators generally have a mandate to? 1. Protect investors from unfair,improper,fraudulent practices 2. Promote fair and efficient capital markets 3. Promote confidence in capital market 4. Reduce systemic risk Role of CSA-CANADIAN SECURITIES ADMINISTRATORS - ANSWER-Policy making body from Securities Regulators, a forum for Canada's Securities Regulators to improve , coordinate and harmonize regulations of the Canadian Capital market. With the goal of to protect investors from unfair,improper,fraudulent practices;foster fair and efficient capital markets and reduce the risk to market's integrity and to investor confidence in the market MFDA- MUTUAL FUND DEALERS ASSOCIATION - ANSWER-- self -regulatory organization for the distribution side of the Canadian mutual Funds industry -responsible for regulating the operations, standards of practice and business conduct of its members and their dealing representatives, with view to enhancing investor protection and strengthening public confidence in the mutual fund industry. - Empowered to admit members, perform compliance reviews,enforce rules in disciplinary processes that can result in fines,suspension,or termination of membership. AMF/CSF-Securities Regulatory in Quebec same as MFDA - ANSWER--CSF - recognized regulatory reps in Quebec dealing in investment funds not under IIROC; protect consumers by maintaining discipline and overseeing the training and ethics of its members; - AMF- securities regulators in Quebec;responsible for ongoing regulatory compliance and continuing education requirements to CSF. IIROC- INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA - ANSWER-- self regulatory organizations for investment dealers - the activities include: protection of investing public,self regulation,liaison with Provincial securities commissions, public policy representations, maintenance Of orderly marketing and trading, education, publication of statistical Information,liaison with other financial institutions. OBSI- OMBUDSMAN FOR BANKING SERVICES AND INVESTMENTS - ANSWER-not a regulator but an independent organization whose objective is to resolve the disputes of the participating banking services and investment firms and their clients.