IFIC (UNIT 1 QUIZ) QUESTIONS & ANSWERS
Mutual funds sales are regulated (in Canada) by provincial and federal organizations. -
Answers -_____ _______ sales are regulated (in Canada) by provincial and federal
organizations.
dealing representative are professionals who protect the interests of the investing public
and industry participants. - Answers -_________ __________ are professionals who
protect the interests of the investing public and industry participants.
Each provincial monitoring body is referred to as a securities commission (or securities
regulator) - Answers -Each provincial monitoring body is referred to as a securities
_______ (or securities regulator)
Two (2) levels of monitoring bodies:
- 1: Provincial level (securities regulators/commission, dealing reps)
- 2: National level (CSA, MFDA, OBSI, IIROC, OSFI) - Answers -Two (2) levels of
monitoring bodies
Securities regulator/commission mandate:
- Protect investors from fraudulent/unfair practices
- Promote fair capital markets
- Promote confidence in capital markets
- Reduce risk (systemic) - Answers -Securities _______/______ mandate:
Protect investors from fraudulent/unfair practices
Promote fair capital markets
Promote confidence in capital markets
Reduce risk (systemic)
Securities regulator/commission responsibilities:
- Establish strict standards for disclosure of info before offering new securities to the
public.
- Review/approve mutual funds before they are put for sale in their province.
- Register companies and individuals who sell securities
- Register companies/individuals who manage mutual fund portfolios
- Enforce regulations that govern the buying and selling of securities
- Investigate investor complaints against companies (and their employees)
- Discipline companies/individuals who violate the regulations - Answers -Securities
_____/______ responsibilities:
- Establish strict standards for disclosure of info before offering new securities to the
public.
- Review/approve mutual funds before they are put for sale in their province.
- Register companies and individuals who sell securities
, - Register companies/individuals who manage mutual fund portfolios
- Enforce regulations that govern the buying and selling of securities
- Investigate investor complaints against companies (and their employees)
- Discipline companies/individuals who violate the regulations
Each Securities Regulator/commission has the responsibility to grand or revoke
registration of individuals/companies who sell securities and manage mutual fund
portfolios - Answers -Each Securities Regulator/commission has the responsibility to
_____ or ______ registration of individuals/companies who sell securities and manage
mutual fund portfolios
Dealing Representative (me) responsibilities:
- Register with my securities regulator
- Conduct business under the Securities Regulator (Commission) - Answers -____
_________ (me) responsibilities:
- Register with my securities regulator
- Conduct business under the Securities Regulator (Commission) rules
CSA: Canadian Securities Administrators (national level monitory body)
- Policy making body
- Composed of Securities regulators from each province
Mandate:
- Protect investors from fraudulent/unfair practices
- Promote fair capital markets
- Reduce risk to market integrity
- Reduce risk of investor confidence in the market - Answers -CSA: _______ _______
________ (national level monitory body)
MFDA: Mutual Fund Dealer Association
- The "distribution side" of the mutual funds industry, in Canada
- Not-for-profit corporation
- Members are mutual fund dealers (licensed with securities regulators)
- ALL MUTUAL FUND DEALERS LICENCED OUTSIDE OF QUEBEC ARE REQUIRED
TO BE MEMBERS OF THE MFDA
Responsibilities:
- Protect investors and strengthen public confidence in the Canadian mutual fund
industry
- Grant/revoke membership by enforce rules transparently
- Perform compliance reviews - Answers -MFDA: _______ _______ ________
_________ (national level monitory body)
IPC: Investor Protection Corporation (MFDA corporation)
- Separate legal entity of MFDA
- Provides protection of up to $1 million for eligible customer losses ($1 million in
general accounts, $1 million in retirement accounts)
Mutual funds sales are regulated (in Canada) by provincial and federal organizations. -
Answers -_____ _______ sales are regulated (in Canada) by provincial and federal
organizations.
dealing representative are professionals who protect the interests of the investing public
and industry participants. - Answers -_________ __________ are professionals who
protect the interests of the investing public and industry participants.
Each provincial monitoring body is referred to as a securities commission (or securities
regulator) - Answers -Each provincial monitoring body is referred to as a securities
_______ (or securities regulator)
Two (2) levels of monitoring bodies:
- 1: Provincial level (securities regulators/commission, dealing reps)
- 2: National level (CSA, MFDA, OBSI, IIROC, OSFI) - Answers -Two (2) levels of
monitoring bodies
Securities regulator/commission mandate:
- Protect investors from fraudulent/unfair practices
- Promote fair capital markets
- Promote confidence in capital markets
- Reduce risk (systemic) - Answers -Securities _______/______ mandate:
Protect investors from fraudulent/unfair practices
Promote fair capital markets
Promote confidence in capital markets
Reduce risk (systemic)
Securities regulator/commission responsibilities:
- Establish strict standards for disclosure of info before offering new securities to the
public.
- Review/approve mutual funds before they are put for sale in their province.
- Register companies and individuals who sell securities
- Register companies/individuals who manage mutual fund portfolios
- Enforce regulations that govern the buying and selling of securities
- Investigate investor complaints against companies (and their employees)
- Discipline companies/individuals who violate the regulations - Answers -Securities
_____/______ responsibilities:
- Establish strict standards for disclosure of info before offering new securities to the
public.
- Review/approve mutual funds before they are put for sale in their province.
- Register companies and individuals who sell securities
, - Register companies/individuals who manage mutual fund portfolios
- Enforce regulations that govern the buying and selling of securities
- Investigate investor complaints against companies (and their employees)
- Discipline companies/individuals who violate the regulations
Each Securities Regulator/commission has the responsibility to grand or revoke
registration of individuals/companies who sell securities and manage mutual fund
portfolios - Answers -Each Securities Regulator/commission has the responsibility to
_____ or ______ registration of individuals/companies who sell securities and manage
mutual fund portfolios
Dealing Representative (me) responsibilities:
- Register with my securities regulator
- Conduct business under the Securities Regulator (Commission) - Answers -____
_________ (me) responsibilities:
- Register with my securities regulator
- Conduct business under the Securities Regulator (Commission) rules
CSA: Canadian Securities Administrators (national level monitory body)
- Policy making body
- Composed of Securities regulators from each province
Mandate:
- Protect investors from fraudulent/unfair practices
- Promote fair capital markets
- Reduce risk to market integrity
- Reduce risk of investor confidence in the market - Answers -CSA: _______ _______
________ (national level monitory body)
MFDA: Mutual Fund Dealer Association
- The "distribution side" of the mutual funds industry, in Canada
- Not-for-profit corporation
- Members are mutual fund dealers (licensed with securities regulators)
- ALL MUTUAL FUND DEALERS LICENCED OUTSIDE OF QUEBEC ARE REQUIRED
TO BE MEMBERS OF THE MFDA
Responsibilities:
- Protect investors and strengthen public confidence in the Canadian mutual fund
industry
- Grant/revoke membership by enforce rules transparently
- Perform compliance reviews - Answers -MFDA: _______ _______ ________
_________ (national level monitory body)
IPC: Investor Protection Corporation (MFDA corporation)
- Separate legal entity of MFDA
- Provides protection of up to $1 million for eligible customer losses ($1 million in
general accounts, $1 million in retirement accounts)
