IFIC (Unit 1 Quiz) Complete Questions And Answers 2023

IFIC (Unit 1 Quiz ) Complete Questions And Answers 2023 Mutual funds sa les are regulated (in Canada) by provincial and federal organizations. Correct Answer: _____ _______ sales are regulated (in Canada) by provincial and federal organizations. dealing representative are professionals who protect the interests of the investing public and industry participants. Correct Answer: _________ __________ are professionals who protect the interests of the investing public and industry participants. Each provincial monitoring body is referred to as a securities commission (or securities regulator) Correct Answer: Each provincial monitoring body is referred to as a securities _______ (or securities regulator) Two (2) levels of monitoring bodies: - 1: Provi ncial level (securities regulators/commission, dealing reps) - 2: National level (CSA, MFDA, OBSI, IIROC, OSFI) Correct Answer: Two (2) levels of monitoring bodies Securities regulator/commission mandate: - Protect investors from fraudulent/unfair practic es - Promote fair capital markets - Promote confidence in capital markets - Reduce risk (systemic) Correct Answer: Securities _______/______ mandate: Protect investors from fraudulent/unfair practices Promote fair capital markets Promote confidence in capi tal markets Reduce risk (systemic) Securities regulator/commission responsibilities: - Establish strict standards for disclosure of info before offering new securities to the public. - Review/approve mutual funds before they are put for sale in their prov ince. - Register companies and individuals who sell securities - Register companies/individuals who manage mutual fund portfolios - Enforce regulations that govern the buying and selling of securities - Investigate investor complaints against companies (an d their employees) - Discipline companies/individuals who violate the regulations Correct Answer: Securities _____/______ responsibilities: - Establish strict standards for disclosure of info before offering new securities to the public. - Review/approve m utual funds before they are put for sale in their province. - Register companies and individuals who sell securities - Register companies/individuals who manage mutual fund portfolios - Enforce regulations that govern the buying and selling of securities - Investigate investor complaints against companies (and their employees) - Discipline companies/individuals who violate the regulations Each Securities Regulator/commission has the responsibility to grand or revoke registration of individuals/companies w ho sell securities and manage mutual fund portfolios Correct Answer: Each Securities Regulator/commission has the responsibility to _____ or ______ registration of individuals/companies who sell securities and manage mutual fund portfolios Dealing Represe ntative (me) responsibilities: - Register with my securities regulator - Conduct business under the Securities Regulator (Commission) Correct Answer: ____ _________ (me) responsibilities: - Register with my securities regulator - Conduct business under the Securities Regulator (Commission) rules CSA: Canadian Securities Administrators (national level monitory body) - Policy making body - Composed of Securities regulators from each province Mandate: - Protect investors from fraudulent/unfair practices - Promote fair capital markets - Reduce risk to market integrity - Reduce risk of investor confidence in the market Correct Answer: CSA: _______ _______ ________ (national level monitory body) MFDA: Mutual Fund Dealer Association - The "distribution side" of t he mutual funds industry, in Canada - Not-for-profit corporation - Members are mutual fund dealers (licensed with securities regulators) - ALL MUTUAL FUND DEALERS LICENCED OUTSIDE OF QUEBEC ARE REQUIRED TO BE MEMBERS OF THE MFDA Responsibilities: - Protect investors and strengthen public confidence in the Canadian mutual fund industry - Grant/revoke membership by enforce rules transparently - Perform compliance reviews Correct Answer: MFDA: _______ _______ ________ _________ (national level monitor y body) IPC: Investor Protection Corporation (MFDA corporation) - Separate legal entity of MFDA - Provides protection of up to $1 million for eligible customer losses ($1 million in general accounts, $1 million in retirement accounts) - Coverage does not apply to funds held in client name, only in nominee name (A name used by a corporation) Correct Answer: IPC: ____ _____ _____ (MFDA corporation)