CONDUCT AND PRACTICES HANDBOOK (CPH) NEWEST
2025/2026 EXAM WITH COMPLETE QUESTIONS AND ANSWERS
/VERIFIED/GRADED A+|LATEST 2026 | GUARANTEED PASS
Fiduciary Duty - ----Answers---A legal term that describes a
high degree of duty of care.
Know Your Client (KYC) Rule - ----Answers---The cardinal
rule in making investment recommendations. The IA must
know all relevant information about every client and every
order to ensure that his/her recommendations to clients are
suitable.
Personal Information Protection and Electronic Documents Act
(PIPEDA) - ----Answers---The Act that governs each dealer
member's information-gathering processes and regulates how
firms may use and disclose the personal information that is
collected in the course of doing business.
Registrant Standards of Conduct - ----Answers---The
Standards of Conduct amplify the Code of Ethics and set out
certain specifics of required behavior. These requirements are
based in large part on the provincial Securities Acts and the
SRO rules.
Suitability - ----Answers---A registrant's major concern in
making investment recommendations. Unless a suitability
exemption applies, all information about a client and a security
Page 1 of 50
,must be analyzed to determine whether a particular
investment is suitable for a client.
Unsolicited Order - ----Answers---An order entered by a
client where neither the client's IA or his/her dealer member
recommended the order.
Autorité des marchés financiers (Financial Services Authority)
(AMF) - ----Answers---The body that administers the
regulatory framework surrounding Québec's financial sector
securities sector.
Formal Take-over Bid - ----Answers---An offer made to the
security holders of a company to purchase the voting
securities of a company which, with the offeror's already-
owned securities, will in total exceed 20% of the outstanding
voting securities of the company.
Compliance - ----Answers---Compliance is following the
rules, whether those rules are legal and regulatory
requirements or internal policies.
Confidentiality - ----Answers---The ethical principle that a
securities industry professional will hold secret all information
relating to a client and the client's account unless the client
consents to its disclosure, or a formal request is made by the
appropriate regulators
Conflict of Interest - ----Answers---A situation in which a
registrant's personal or financial interests conflict with those
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,of a client or the registrant's dealer member. In cases of
potential or actual conflict of interest, a client's interests must
be given priority and the conflict should be disclosed.
Discretionary Account - ----Answers---A securities account
for which the client has given a dealer member specific
written authorization to make decisions regarding the security,
price, quantity or timing of orders in the account.
Due Diligence - ----Answers---Investigation into and
verification of the details of a potential investment, such as an
examination of operations and management, and the
verification of material facts.
Duty of Care - ----Answers---An IA's duty to his client to
ensure that he/she does everything "reasonably practicable"
to protect the client's assets. This involves devoting the time
and attention necessary to make informed decisions.
Also known as Standard A
Canadian Investor Protection Fund (CIPF) - ----Answers---A
fund that protects investors against the insolvency of any
dealer member.
Disclosure - ----Answers---One of the principles of
securities regulation in Canada. This principle entails full, true
and plain disclosure of all material facts necessary to make
reasoned investment decisions.
Page 3 of 50
, Financial Transactions Reports Analysis Centre of Canada
(FINTRAC) - ----Answers---FINTRAC receives, analyzes,
assesses and discloses financial intelligence on suspected
money laundering, terrorist financing, and threats to the
security of Canada.
Integrated Market Enforcement Teams (IMETs) - ----Answers-
--An initiative of the RCMP and the federal government to
detect, investigate and deter capital markets fraud.
Joint Serious Offences Team (JSOTs) - ----Answers---JSOT is
an enforcement partnership between the OSC, the RCMP
Financial Crime program and the Ontario Provincial Police
Anti-Rackets Branch. JSOT investigates and prosecutes
serious violations of the law using provisions of the Securities
Act (Ontario) and Criminal Code.
Investment Industry Association of Canada (IIAC) - ----
Answers---IIAC is a member-based, advocacy association
that advances the growth and development of the Canadian
investment industry.
Investment Industry Regulatory Organization of Canada (IIROC)
- ----Answers---The national self-regulatory organization
overseeing all investment dealers and trading activity on
equity and debt marketplaces in Canada. IIROC is responsible
for enforcing the rules and regulations regarding sales,
business and financial practices and trading activities of
individuals and firms under IIROC's jurisdiction.
Page 4 of 50
2025/2026 EXAM WITH COMPLETE QUESTIONS AND ANSWERS
/VERIFIED/GRADED A+|LATEST 2026 | GUARANTEED PASS
Fiduciary Duty - ----Answers---A legal term that describes a
high degree of duty of care.
Know Your Client (KYC) Rule - ----Answers---The cardinal
rule in making investment recommendations. The IA must
know all relevant information about every client and every
order to ensure that his/her recommendations to clients are
suitable.
Personal Information Protection and Electronic Documents Act
(PIPEDA) - ----Answers---The Act that governs each dealer
member's information-gathering processes and regulates how
firms may use and disclose the personal information that is
collected in the course of doing business.
Registrant Standards of Conduct - ----Answers---The
Standards of Conduct amplify the Code of Ethics and set out
certain specifics of required behavior. These requirements are
based in large part on the provincial Securities Acts and the
SRO rules.
Suitability - ----Answers---A registrant's major concern in
making investment recommendations. Unless a suitability
exemption applies, all information about a client and a security
Page 1 of 50
,must be analyzed to determine whether a particular
investment is suitable for a client.
Unsolicited Order - ----Answers---An order entered by a
client where neither the client's IA or his/her dealer member
recommended the order.
Autorité des marchés financiers (Financial Services Authority)
(AMF) - ----Answers---The body that administers the
regulatory framework surrounding Québec's financial sector
securities sector.
Formal Take-over Bid - ----Answers---An offer made to the
security holders of a company to purchase the voting
securities of a company which, with the offeror's already-
owned securities, will in total exceed 20% of the outstanding
voting securities of the company.
Compliance - ----Answers---Compliance is following the
rules, whether those rules are legal and regulatory
requirements or internal policies.
Confidentiality - ----Answers---The ethical principle that a
securities industry professional will hold secret all information
relating to a client and the client's account unless the client
consents to its disclosure, or a formal request is made by the
appropriate regulators
Conflict of Interest - ----Answers---A situation in which a
registrant's personal or financial interests conflict with those
Page 2 of 50
,of a client or the registrant's dealer member. In cases of
potential or actual conflict of interest, a client's interests must
be given priority and the conflict should be disclosed.
Discretionary Account - ----Answers---A securities account
for which the client has given a dealer member specific
written authorization to make decisions regarding the security,
price, quantity or timing of orders in the account.
Due Diligence - ----Answers---Investigation into and
verification of the details of a potential investment, such as an
examination of operations and management, and the
verification of material facts.
Duty of Care - ----Answers---An IA's duty to his client to
ensure that he/she does everything "reasonably practicable"
to protect the client's assets. This involves devoting the time
and attention necessary to make informed decisions.
Also known as Standard A
Canadian Investor Protection Fund (CIPF) - ----Answers---A
fund that protects investors against the insolvency of any
dealer member.
Disclosure - ----Answers---One of the principles of
securities regulation in Canada. This principle entails full, true
and plain disclosure of all material facts necessary to make
reasoned investment decisions.
Page 3 of 50
, Financial Transactions Reports Analysis Centre of Canada
(FINTRAC) - ----Answers---FINTRAC receives, analyzes,
assesses and discloses financial intelligence on suspected
money laundering, terrorist financing, and threats to the
security of Canada.
Integrated Market Enforcement Teams (IMETs) - ----Answers-
--An initiative of the RCMP and the federal government to
detect, investigate and deter capital markets fraud.
Joint Serious Offences Team (JSOTs) - ----Answers---JSOT is
an enforcement partnership between the OSC, the RCMP
Financial Crime program and the Ontario Provincial Police
Anti-Rackets Branch. JSOT investigates and prosecutes
serious violations of the law using provisions of the Securities
Act (Ontario) and Criminal Code.
Investment Industry Association of Canada (IIAC) - ----
Answers---IIAC is a member-based, advocacy association
that advances the growth and development of the Canadian
investment industry.
Investment Industry Regulatory Organization of Canada (IIROC)
- ----Answers---The national self-regulatory organization
overseeing all investment dealers and trading activity on
equity and debt marketplaces in Canada. IIROC is responsible
for enforcing the rules and regulations regarding sales,
business and financial practices and trading activities of
individuals and firms under IIROC's jurisdiction.
Page 4 of 50
