IFSE - CIFC - Unit 1 Questions and Answers 100% Pass

IFSE - CIFC - Unit 1 Questions and Answers 100% Pass National Instruments are developed through? CSA With which organization must mutual fund dealers (outside of Quebec) register? MFDA Which organization operates the Investor Protection Corporation (IPC)? MFDA Registration Requirements and Exemptions provides the harmonized registration rules for the registration of firms and individuals with the provincial or territorial securities commissions NI 31-103 Mutual Fund Prospectus Disclosure ensures that mutual funds disclose the info that investors should consider when deciding whether to invest, or remain invested, in a fund. It prescribed the content of key disclosure documents including the simplified prospectus, the fund facts document, and the annual info form NI 81-101 Mutual Funds is the main instrument regulating mutual funds. It regulates how mutual funds are managed, bought and sold NI 81-102 Mutual Fund Sales Practices ensures that mutual funds are sold on the basis of what is suitable for, and in the best interests of, investors. It sets minimum standards of conduct to be followed by managers, principal distributors, registered dealers and dealing representatives when distributing mutual funds NI 81-105 Proceeds of Crime (Money Laundering) and Terrorist Financing Act - combats the laundering and and the financing of terrorist activities PCMLTFA Financial Transactions and Reports Analysis Centre of Canada - Canada's financial intelligence unit FINTRAC $10,000 or more What is considered a large cash transaction? 1. Opening a non-reg account 2. Client conducts large cash transaction if you don't recognize the client 3. Client conducts or attempts to conduct suspicious transaction 4. An individual is authorized to give instructions above which you have to keep a record When do you need to confirm client ID? 1. Head of state or government 2. Member of the executive council of government or legislature 3. Deputy minister (or equivalent) 4. Ambassador or ambassador's attaché or councillor 5. Military general (or higher rank) 6. President of a state-owner company or bank 7. Head of government agency 8. Judge 9. Leader or president of a political party in a legislature What are considered Politically Exposed Foreign Persons? Imposes obligations on federal government departments and agencies to respect privacy rights by limiting the collection, use and disclosure of personal info. Also gives individuals the right to access any personal info about themselves that these organizations hold and request correction if necessary Privacy Act Canada's private sector privacy law. Establishes rules for how federally regulated private sector organizations may collect, use or disclose personal info. Does NOT apply to any government institution to which the Privacy Act applies, someone who collects info for personal use (ex wedding list addresses), an organization that collects info for journalistic, artistic, or literary purpose. PIPEDA (Personal Information Protection and Electronic Documents Act) 1. Age, weight, height, name where it appears with other personal info 2. Medical records 3. ID numbers, income, ethnic origin, blood type 4. Opinions, evaluations, comments, social status, disciplinary action 5. Employee files, credit records, loan records, dispute with a merchant, intentions (ex change jobs) What constitutes personal info? Cannot cold call a possible new client, or former clients who have not done business with you in the last 18 months who are registered on DNCL. Also cannot cold call clients from last 18 months who are listed on DNCL. You can call existing clients regarding investment advice, changing market conditions, or due to regulatory conditions DNCL Canada's Anti-Spam Legislation - in effect as of July 1, 2014. Senders of commercial electronic messages have to obtain consent from the recipient before a message is sent. Senders must identify themselves and allow the recipient to withdraw consent. CASL Any person is permitted to send one commercial electronic message without consent, based on a referral by another institution with whom the sender has an existing relationship Referral Exemption - financial entities - life insurers - real estate entities - casinos The PCMLTFA applies to