IFSE - CIFC - Unit 2 Latest Update Graded A

IFSE - CIFC - Unit 2 Latest Update Graded A Ethical Conduct Adheres to approved standards CCO (Chief Compliance Officer) Responsible for establishing and maintaining compliance policies and procedures as well as monitoring and assessing compliance. Must submit an annual report to the board of directors detailing the compliance assessment. CRM (Client Relationship Model) - Relationship disclosure - Client communications - Client reporting Relationship Disclosure (NI 31-103) Requires mutual fund dealers to provide written disclosures to the client, either on the account opening form OR on a separate form. Client Communications Ads and sales communications don't count. Cannot: - be false or aimed at misleading the client - make exaggerated claims or go against the interests of the client - violate any law or regulation - be inconsistent with info given by the mutual fund dealer on any other document Client Reporting MFDA requires that's account statements need to be sent to the client at least every 3 months Possible conflicts of interest through personal financial dealings with Clients - borrowing from or lending to clients - private investment schemes with clients - monetary or non-monetary benefits to or from clients - outside business activities Limited POA Restricts permitted actions to those if a specific nature such as financial matters General POA Permits a broader range of activities Dealing Representative - meet the proficiency requirements - obtain employment with a mutual fund dealer - contact the mutual fund dealer's compliance officer to register with the province Mutual Fund Dealer Must submit the dealing representative's registration to the National Registration Database Provincial or Territorial Securities Commission Grant your registration, if you have met applicable requirements and there are no objections to registration on other grounds National Registration Database (NRD) A web-based system that permits mutual fund salespersons and investment advisors to file applications for registration electronically. Under the NRD only one application needs to be filed for registration in multiple jurisdictions The Passport System Example: Bill, a rep of ABC, works in their BC office. ABC wants to apply for registration for Bill in both BC and AB. ABC will need to make an application to the BC Securities Commission since Bill's working office is in BC, even though ABC's HQ is in AB. How often do you have to renew your registration with the NRD? Never as long as yearly fees are always paid Material changes that need to be reported - Name change resulting from marriage or divorce - Declaration of personal bankruptcy - Change of address Client Mobility Exemption You may continue to service an existing client who moves to a new jurisdiction if: 1. Your mutual fund dealer is registered in the new jurisdiction, known as the local jurisdiction 2. You have no more than 5 clients in the local jurisdiction