IFIC - Section 6 Chapter 17 - Mutual
Fund Dealer Regulation correctly
answered to pass
Registration, Disclosure, Enforcement
(expand on this)
Security administrators periodically issue policy statements which sets out their position on
various issues and topics - correct answer ✔✔Powers of the Securities Administrators
1. Assess and handle complaints
2. Investigate possible violation of its rules and policies
3. Conduct disciplinary actions
4. Impose fines and suspend rights and privileges of membership in MFDA - correct answer
✔✔MFDA has power to
To provide protection from losses for eligible customers arising from the insolvency of a MFDA
dealer member. - correct answer ✔✔What is the main purpose of the MFDA Investor protection
program?
Each branch or office of an MFDA dealer required to have a person responsible for compliance
- Have a responsibility to ensure that dealing representatives deal fairly, honestly and in good
faith (National instrument 31-103) - correct answer ✔✔Branch Compliance Officer (BCO)
1. Provide any advice/recommendations on mutual funds
2. Hand out a fund facts document/mutual fund prospectus/AIF or annual or semi-annual
financial report
3. Hand out order form for mutual funds
, 4. Assist client with completion of an order form for mutual funds
5. Provide info about a specific mutual fund - correct answer ✔✔Prior to being registered an
individual may NOT
1. Receive a redemption request for purpose of processing redemption
2. Receive completed order form for purpose of forwarding it to registered salesperson
3. Provide basic info to current unitholders regarding their current holdings (NAVPU, number of
units, income and CG etc.)
4. Refer clients ro registered mutual fund dealing rep - correct answer ✔✔Prior to being
registered, an individual MAY
1) Candidate successfully passes exam.
2) Sponsor notifies candidate of exam results
3) Candidate files registration application and the appropriate fee with provincial or territorial
securities administrator
4) To remain a registered dealing rep, must pay fee annually at specified time frames. If indiv
not registered within 3 years of successful completion of exam, must re-do process
5) Registered dealing rep and registrant's dealer must notify appropriate securities
administrator promptly in writing within 5 business days of any changes in specified information
provided on dealing representative's registration application
( Dealing rep. must complete approved training program within 90 days. ) - correct answer
✔✔Registration process
1. Description of the nature or type of client account
2. Description of products/services offered by mutual fund dealer
3. Description of procedures at the dealer regarding handling of cash and cheques
4. Description of dealer's obligation to ensure each order accepted or any recommendation
made to the client is suitable
Fund Dealer Regulation correctly
answered to pass
Registration, Disclosure, Enforcement
(expand on this)
Security administrators periodically issue policy statements which sets out their position on
various issues and topics - correct answer ✔✔Powers of the Securities Administrators
1. Assess and handle complaints
2. Investigate possible violation of its rules and policies
3. Conduct disciplinary actions
4. Impose fines and suspend rights and privileges of membership in MFDA - correct answer
✔✔MFDA has power to
To provide protection from losses for eligible customers arising from the insolvency of a MFDA
dealer member. - correct answer ✔✔What is the main purpose of the MFDA Investor protection
program?
Each branch or office of an MFDA dealer required to have a person responsible for compliance
- Have a responsibility to ensure that dealing representatives deal fairly, honestly and in good
faith (National instrument 31-103) - correct answer ✔✔Branch Compliance Officer (BCO)
1. Provide any advice/recommendations on mutual funds
2. Hand out a fund facts document/mutual fund prospectus/AIF or annual or semi-annual
financial report
3. Hand out order form for mutual funds
, 4. Assist client with completion of an order form for mutual funds
5. Provide info about a specific mutual fund - correct answer ✔✔Prior to being registered an
individual may NOT
1. Receive a redemption request for purpose of processing redemption
2. Receive completed order form for purpose of forwarding it to registered salesperson
3. Provide basic info to current unitholders regarding their current holdings (NAVPU, number of
units, income and CG etc.)
4. Refer clients ro registered mutual fund dealing rep - correct answer ✔✔Prior to being
registered, an individual MAY
1) Candidate successfully passes exam.
2) Sponsor notifies candidate of exam results
3) Candidate files registration application and the appropriate fee with provincial or territorial
securities administrator
4) To remain a registered dealing rep, must pay fee annually at specified time frames. If indiv
not registered within 3 years of successful completion of exam, must re-do process
5) Registered dealing rep and registrant's dealer must notify appropriate securities
administrator promptly in writing within 5 business days of any changes in specified information
provided on dealing representative's registration application
( Dealing rep. must complete approved training program within 90 days. ) - correct answer
✔✔Registration process
1. Description of the nature or type of client account
2. Description of products/services offered by mutual fund dealer
3. Description of procedures at the dealer regarding handling of cash and cheques
4. Description of dealer's obligation to ensure each order accepted or any recommendation
made to the client is suitable
