IFSE Items Questions and Verified Answers
- net financial assets with a realizable value: $1mn
- net assets: $5mn answer - For the individual Accredited investor (AI) exemption test, what is
the minimum amount of combined:
- net financial assets with a realizable value; or
- net assets
- individual pre-tax net income: $200k
- individual pre-tax net income + spouse's: $300k
- two most recent years answer - For the individual Accredited investor (AI) exemption test,
what is the minimum amount:
- individual pre-tax net income; or
- individual pre-tax net income + spouse's?
In how many most recent calendar years must this be achieved?
$150k answer - What is the minimum amount (MA) exemption amount?
$10,000 answer - Under the offering memorandum (OM) exemption, what is a common
offering acquisition cost threshold for non-exempt investors?
- net assets, alone or with a spouse: $400k
- net income before taxes in each of the two most recent calendar years: $75k
- net income before taxes, alone or with a spouse, in each of the two most recent calendar
years: $125k answer - Eligible investor under the offering memorandum (OM) exemption
require minimums of what for each of the following:
- net assets, alone or with a spouse;
,- net income before taxes in each of the two most recent calendar years
- net income before taxes, alone or with a spouse, in each of the two most recent calendar years
50 answer - A private issuer must limits the number of
security holders (outside of employees/former employees) to less than how many?
- not securitized
- not convertible, exchangeable, or accompanied by a right to purchase another security answer
- Fixed income securities of governments (federal and provincial), banks, and short-term
corporate
paper are exempt if they have which characteristics?
- retail investors:
* $2,500 per investment
* $10,000 per year in Ontario
- accredited investors
* $25,000 per investment
* $50,000 per year in Ontario
- permitted clients: no limits answer - In a crowd funding exemption how much can the
following invest:
- retail investors
- accredited investors
- permitted clients
10 days answer - Under the accredited investor exemption and the offering memorandum
exemption, a report of trade must be filed within how many days?
,A signed risk acknowledgement in prescribed form from the purchaser answer - For exempt
securities offered to investors under the accredited investor (AI), offering memorandum (OM),
and
family, friends and close business associates (FFBA) exemptions, the issuer is required to obtain
what from the purchaser?
Securities distributed under the:
- government debt exemption
- bank debt exemption
- short-term debt exemption answer - Which securities distributed pursuant to an exemption
from the prospectus requirement are not subject to resale
restrictions?
When the client qualify for exemption from prospectus requirements answer - When is it
permitted to sell mutual funds to clients without being registered as a mutual fund dealing
representative?
- Protect investors from unfair, improper, and fraudulent practices
- Promote fair and efficient capital markets
- Reduce systemic risk answer - Securities commissions have a mandate to do what?
System for Electronic Document Analysis and Retrieval answer - - What does SEDAR stand for?
System for Electronic Disclosure by Insiders answer - What does SEDI stand for?
National Registration Database answer - What does NRD stand for?
National database for cease trade orders (CTO). answer - What is the CTO National Database?
, Prospectus and Registration Exemptions answer - What does National Instrument 45-106
cover?
Registration Requirements, Exemptions and Ongoing Registration Obligations answer - What
does National Instrument 31-103 cover?
Investment Industry Regulatory Organization of Canada (IIROC) answer - Investment dealers
must become members of which SRO?
Mutual Fund Dealers Association of Canada (MFDA) answer - Mutual fund dealers must
become members of which SRO?
Their members, generally dealers answer - SROs have oversight over who?
- Other market participants, including issuers, investment counsel/portfolio managers, and
investment fund managers.
- In addition, the securities commissions directly regulate exempt market dealers. answer - The
securities commissions directly regulate who?
Become registered as an exempt market dealer answer - How could mutual fund dealers (MFDA
members) become permitted to transact business in the exempt markets?
- Protect investors
- Foster market integrity
- Enhance the efficiency and competitiveness of the Canadian capital markets answer - What is
IIROC's mission?
- Registration
- net financial assets with a realizable value: $1mn
- net assets: $5mn answer - For the individual Accredited investor (AI) exemption test, what is
the minimum amount of combined:
- net financial assets with a realizable value; or
- net assets
- individual pre-tax net income: $200k
- individual pre-tax net income + spouse's: $300k
- two most recent years answer - For the individual Accredited investor (AI) exemption test,
what is the minimum amount:
- individual pre-tax net income; or
- individual pre-tax net income + spouse's?
In how many most recent calendar years must this be achieved?
$150k answer - What is the minimum amount (MA) exemption amount?
$10,000 answer - Under the offering memorandum (OM) exemption, what is a common
offering acquisition cost threshold for non-exempt investors?
- net assets, alone or with a spouse: $400k
- net income before taxes in each of the two most recent calendar years: $75k
- net income before taxes, alone or with a spouse, in each of the two most recent calendar
years: $125k answer - Eligible investor under the offering memorandum (OM) exemption
require minimums of what for each of the following:
- net assets, alone or with a spouse;
,- net income before taxes in each of the two most recent calendar years
- net income before taxes, alone or with a spouse, in each of the two most recent calendar years
50 answer - A private issuer must limits the number of
security holders (outside of employees/former employees) to less than how many?
- not securitized
- not convertible, exchangeable, or accompanied by a right to purchase another security answer
- Fixed income securities of governments (federal and provincial), banks, and short-term
corporate
paper are exempt if they have which characteristics?
- retail investors:
* $2,500 per investment
* $10,000 per year in Ontario
- accredited investors
* $25,000 per investment
* $50,000 per year in Ontario
- permitted clients: no limits answer - In a crowd funding exemption how much can the
following invest:
- retail investors
- accredited investors
- permitted clients
10 days answer - Under the accredited investor exemption and the offering memorandum
exemption, a report of trade must be filed within how many days?
,A signed risk acknowledgement in prescribed form from the purchaser answer - For exempt
securities offered to investors under the accredited investor (AI), offering memorandum (OM),
and
family, friends and close business associates (FFBA) exemptions, the issuer is required to obtain
what from the purchaser?
Securities distributed under the:
- government debt exemption
- bank debt exemption
- short-term debt exemption answer - Which securities distributed pursuant to an exemption
from the prospectus requirement are not subject to resale
restrictions?
When the client qualify for exemption from prospectus requirements answer - When is it
permitted to sell mutual funds to clients without being registered as a mutual fund dealing
representative?
- Protect investors from unfair, improper, and fraudulent practices
- Promote fair and efficient capital markets
- Reduce systemic risk answer - Securities commissions have a mandate to do what?
System for Electronic Document Analysis and Retrieval answer - - What does SEDAR stand for?
System for Electronic Disclosure by Insiders answer - What does SEDI stand for?
National Registration Database answer - What does NRD stand for?
National database for cease trade orders (CTO). answer - What is the CTO National Database?
, Prospectus and Registration Exemptions answer - What does National Instrument 45-106
cover?
Registration Requirements, Exemptions and Ongoing Registration Obligations answer - What
does National Instrument 31-103 cover?
Investment Industry Regulatory Organization of Canada (IIROC) answer - Investment dealers
must become members of which SRO?
Mutual Fund Dealers Association of Canada (MFDA) answer - Mutual fund dealers must
become members of which SRO?
Their members, generally dealers answer - SROs have oversight over who?
- Other market participants, including issuers, investment counsel/portfolio managers, and
investment fund managers.
- In addition, the securities commissions directly regulate exempt market dealers. answer - The
securities commissions directly regulate who?
Become registered as an exempt market dealer answer - How could mutual fund dealers (MFDA
members) become permitted to transact business in the exempt markets?
- Protect investors
- Foster market integrity
- Enhance the efficiency and competitiveness of the Canadian capital markets answer - What is
IIROC's mission?
- Registration
