IFIC (Unit 8 Quiz) UPDATED ACTUAL
Exam Questions and CORRECT Answers
The MF is a separate entity from the company managing the fund
- The MF is structured as a Corp or as a trust - CORRECT ANSWER - The MF is a
_____________ entity from the company managing the fund
The MF is structured as a Corp or as a trust - CORRECT ANSWER - The MF is structured
as a ___________ or as a trust
Investors in a MF corp are known as shareholders
- Has a board of directors (rather than Trustees)
Investors in a MF trust are referred to as unitholders
- Has a trustee (rather than board of directors) - CORRECT ANSWER - Investors in a MF
corp are known as _____________________
- Has a board of directors (rather than Trustees)
Investors in a MF trust are referred to as ____________________
- Has a trustee (rather than board of directors)
Mutual fund complex: series of organizations responsible for the fund
Includes:
- investment fund manager
- portfolio manager
- custodian
- and more - CORRECT ANSWER - Mutual fund _____________: series of organizations
responsible for the fund
Investment fund manager
- chooses the portfolio fund manager
,- paid an annual management fee
- Usually the boarder of directors (for a corp) or trustee (for a trust) - CORRECT
ANSWER - ___________ fund manager (aka MF company)
- chooses the portfolio fund manager
- paid an annual management fee
- Usually the boarder of directors (for a corp) or trustee (for a trust)
Portfolio manager
- responsible for trading (making investment decisions)
-paid through management fees - CORRECT ANSWER - ____________ manager
- responsible for trading (making investment decisions)
-paid through management fees
Custodian
- Safekeeper of the cash and securities in fund (to avoid conflict of interest use from the
management company)
- Must be a Canadian chartered bank or trust company (with shareholder equity of $10 million +)
- CORRECT ANSWER - _________________
- Safekeeper of the cash and securities in fund (to avoid conflict of interest use from the
management company)
- Must be a Canadian chartered bank or trust company (with shareholder equity of $10 million +)
Custodian agreement (between fund and custodian): outlines how the funds are interacted with. -
CORRECT ANSWER - What does the Custodian agreement (between fund and custodian)
outline?
Distributor
- Sells units to investors (sales and marketing)
- Transmits redemption requests
, - The dealing representative is part of the distribution network - CORRECT ANSWER -
Distributor
- Sells units to investors (sales and marketing)
- Transmits redemption requests
- The _______________________ (me) is part of the distribution network
Transfer agent
- Records all transfers of ownership
- Performed by a trust company - CORRECT ANSWER - ________________ agent
- Records all transfers of ownership
- Performed by a trust company
Independent review committee (Required for all public mutual and investment funds)
- Oversees potential conflict of interest involving the manager of the investment fund -
CORRECT ANSWER - Independent ____________ committee (Required for all public
mutual and investment funds)
- Oversees potential conflict of interest involving the manager of the investment fund
Six parts of the Mutual fund complex:
- investment fund manager
- portfolio manager
- custodian
- distributor
- transform agent
- independent review committee - CORRECT ANSWER - Six parts of the ___________
_________ ____________:
- investment fund manager
- portfolio manager
- custodian
Exam Questions and CORRECT Answers
The MF is a separate entity from the company managing the fund
- The MF is structured as a Corp or as a trust - CORRECT ANSWER - The MF is a
_____________ entity from the company managing the fund
The MF is structured as a Corp or as a trust - CORRECT ANSWER - The MF is structured
as a ___________ or as a trust
Investors in a MF corp are known as shareholders
- Has a board of directors (rather than Trustees)
Investors in a MF trust are referred to as unitholders
- Has a trustee (rather than board of directors) - CORRECT ANSWER - Investors in a MF
corp are known as _____________________
- Has a board of directors (rather than Trustees)
Investors in a MF trust are referred to as ____________________
- Has a trustee (rather than board of directors)
Mutual fund complex: series of organizations responsible for the fund
Includes:
- investment fund manager
- portfolio manager
- custodian
- and more - CORRECT ANSWER - Mutual fund _____________: series of organizations
responsible for the fund
Investment fund manager
- chooses the portfolio fund manager
,- paid an annual management fee
- Usually the boarder of directors (for a corp) or trustee (for a trust) - CORRECT
ANSWER - ___________ fund manager (aka MF company)
- chooses the portfolio fund manager
- paid an annual management fee
- Usually the boarder of directors (for a corp) or trustee (for a trust)
Portfolio manager
- responsible for trading (making investment decisions)
-paid through management fees - CORRECT ANSWER - ____________ manager
- responsible for trading (making investment decisions)
-paid through management fees
Custodian
- Safekeeper of the cash and securities in fund (to avoid conflict of interest use from the
management company)
- Must be a Canadian chartered bank or trust company (with shareholder equity of $10 million +)
- CORRECT ANSWER - _________________
- Safekeeper of the cash and securities in fund (to avoid conflict of interest use from the
management company)
- Must be a Canadian chartered bank or trust company (with shareholder equity of $10 million +)
Custodian agreement (between fund and custodian): outlines how the funds are interacted with. -
CORRECT ANSWER - What does the Custodian agreement (between fund and custodian)
outline?
Distributor
- Sells units to investors (sales and marketing)
- Transmits redemption requests
, - The dealing representative is part of the distribution network - CORRECT ANSWER -
Distributor
- Sells units to investors (sales and marketing)
- Transmits redemption requests
- The _______________________ (me) is part of the distribution network
Transfer agent
- Records all transfers of ownership
- Performed by a trust company - CORRECT ANSWER - ________________ agent
- Records all transfers of ownership
- Performed by a trust company
Independent review committee (Required for all public mutual and investment funds)
- Oversees potential conflict of interest involving the manager of the investment fund -
CORRECT ANSWER - Independent ____________ committee (Required for all public
mutual and investment funds)
- Oversees potential conflict of interest involving the manager of the investment fund
Six parts of the Mutual fund complex:
- investment fund manager
- portfolio manager
- custodian
- distributor
- transform agent
- independent review committee - CORRECT ANSWER - Six parts of the ___________
_________ ____________:
- investment fund manager
- portfolio manager
- custodian
