CPH Exam
When are suitability requirements not applicable? - correct answer ✔✔For brokers who do not provide
investment advice or operate as a separate legal entity
How is a new product approved? - correct answer ✔✔After review from the New product Committee
What are the ethical principles for a code of ethics? - correct answer ✔✔Trust, integrity, justice, fairness,
and honesty
What are the 5 Standards of Conduct? - correct answer ✔✔Duty of Care, Trustworthiness, Honesty, and
Fairness, Professionalism, Conduct in Accordance with Securities Acts, Confidentiality
What falls under the Standard of Duty of Care? - correct answer ✔✔KYC, Due Diligence, Unsolicited
Orders
What falls under the Standard of Trustworthiness, Honesty, and Fairness? - correct answer ✔✔Priority of
Client Interests, Protection of Client Assets, Complete and Accurate Information, Disclosure
What falls under the Standard of Professionalism? - correct answer ✔✔Client Orders, Trades by
Registered Individuals, Approved Securities, Personal Financial Dealings with Clients, Personal Trading
Activity, Continuous Education
What falls under the Standard of Conduct of Conduct in Accordance with Securities Acts? - correct
answer ✔✔Inside Information
What falls under the Standard of Confidentiality? - correct answer ✔✔Client Information, Use of
Confidential Information
When can SRO's and commissions share information? - correct answer ✔✔If it is in an investigation
,What are the fines under the Personal Information Protection and Electronic Documents Act? - correct
answer ✔✔$10,000 to $100,000
Where does the Personal Information Protection and Electronic Documents act not apply due to similar
legislation? - correct answer ✔✔BC, Alberta, and Quebec
What is the main mandate of securities regulators? - correct answer ✔✔Promote the Integrity of the
Markets and Ensure Investor Protection
What are the 3 principles of securities regulation? - correct answer ✔✔Disclosure, Registration,
Enforcement
What is the maximum penalty for offences under the Ontario Securities Act? - correct answer ✔✔Fine of
5 million and a 5 year prison term, additionally provinces can order repayment of $100,000 to investors
What is the Disciplined Persons List? - correct answer ✔✔A list of those who have been sanctioned for
market misconduct
What is the integrated Market Enforcement Team? - correct answer ✔✔Cooperative effort between the
RCMP and the Federal government
What is the Joint Serious Offences Team? - correct answer ✔✔Joint effort between the OSC and the
RCMP
What is the CSA? - correct answer ✔✔Overseer of securities regulators that meets quarterly in person
and monthly by conference call
What is SEDAR? - correct answer ✔✔Electronic filing system for regulatory filings
What is SEDI? - correct answer ✔✔Insider reports
When should trades be reported to SEDI? - correct answer ✔✔Within 5 days
, When should event reports be reported to SEDI - correct answer ✔✔Within 1 business day
What is the NRD? - correct answer ✔✔Database for registration that applies across Canada
What is an AFR? - correct answer ✔✔Authorized Firm Representative, must submit information to the
NRD
When must a change regarding firms or individuals be submitted to the NRD? - correct answer
✔✔Within 10 days of the change
When must a change regarding citizenship or employment be submitted to the NRD? - correct answer
✔✔Within 30 days
What is the policy for short-term disability leaves with the NRD? - correct answer ✔✔Any supervisory
position leaves must be reported, but for regular employees nothing less than a 3 month leave must be
reported
When must termination of employment be reported to the NRD? - correct answer ✔✔Within 10 days
When must material changes to registrants be reported to the NRD? - correct answer ✔✔Within 10 days
When must material changes to registrants be reported to the employer? - correct answer ✔✔Within 2
business days
What is the CTO National Database? - correct answer ✔✔Keeps a list of companies who have failed to
meet disclosure requirements and prohibits trading in those securities
How can you check the registration of any firm or individual? - correct answer ✔✔The NRS (national
registration search)
What is a National Instrument? - correct answer ✔✔Has been adopted by all CSA jurisdictions
When are suitability requirements not applicable? - correct answer ✔✔For brokers who do not provide
investment advice or operate as a separate legal entity
How is a new product approved? - correct answer ✔✔After review from the New product Committee
What are the ethical principles for a code of ethics? - correct answer ✔✔Trust, integrity, justice, fairness,
and honesty
What are the 5 Standards of Conduct? - correct answer ✔✔Duty of Care, Trustworthiness, Honesty, and
Fairness, Professionalism, Conduct in Accordance with Securities Acts, Confidentiality
What falls under the Standard of Duty of Care? - correct answer ✔✔KYC, Due Diligence, Unsolicited
Orders
What falls under the Standard of Trustworthiness, Honesty, and Fairness? - correct answer ✔✔Priority of
Client Interests, Protection of Client Assets, Complete and Accurate Information, Disclosure
What falls under the Standard of Professionalism? - correct answer ✔✔Client Orders, Trades by
Registered Individuals, Approved Securities, Personal Financial Dealings with Clients, Personal Trading
Activity, Continuous Education
What falls under the Standard of Conduct of Conduct in Accordance with Securities Acts? - correct
answer ✔✔Inside Information
What falls under the Standard of Confidentiality? - correct answer ✔✔Client Information, Use of
Confidential Information
When can SRO's and commissions share information? - correct answer ✔✔If it is in an investigation
,What are the fines under the Personal Information Protection and Electronic Documents Act? - correct
answer ✔✔$10,000 to $100,000
Where does the Personal Information Protection and Electronic Documents act not apply due to similar
legislation? - correct answer ✔✔BC, Alberta, and Quebec
What is the main mandate of securities regulators? - correct answer ✔✔Promote the Integrity of the
Markets and Ensure Investor Protection
What are the 3 principles of securities regulation? - correct answer ✔✔Disclosure, Registration,
Enforcement
What is the maximum penalty for offences under the Ontario Securities Act? - correct answer ✔✔Fine of
5 million and a 5 year prison term, additionally provinces can order repayment of $100,000 to investors
What is the Disciplined Persons List? - correct answer ✔✔A list of those who have been sanctioned for
market misconduct
What is the integrated Market Enforcement Team? - correct answer ✔✔Cooperative effort between the
RCMP and the Federal government
What is the Joint Serious Offences Team? - correct answer ✔✔Joint effort between the OSC and the
RCMP
What is the CSA? - correct answer ✔✔Overseer of securities regulators that meets quarterly in person
and monthly by conference call
What is SEDAR? - correct answer ✔✔Electronic filing system for regulatory filings
What is SEDI? - correct answer ✔✔Insider reports
When should trades be reported to SEDI? - correct answer ✔✔Within 5 days
, When should event reports be reported to SEDI - correct answer ✔✔Within 1 business day
What is the NRD? - correct answer ✔✔Database for registration that applies across Canada
What is an AFR? - correct answer ✔✔Authorized Firm Representative, must submit information to the
NRD
When must a change regarding firms or individuals be submitted to the NRD? - correct answer
✔✔Within 10 days of the change
When must a change regarding citizenship or employment be submitted to the NRD? - correct answer
✔✔Within 30 days
What is the policy for short-term disability leaves with the NRD? - correct answer ✔✔Any supervisory
position leaves must be reported, but for regular employees nothing less than a 3 month leave must be
reported
When must termination of employment be reported to the NRD? - correct answer ✔✔Within 10 days
When must material changes to registrants be reported to the NRD? - correct answer ✔✔Within 10 days
When must material changes to registrants be reported to the employer? - correct answer ✔✔Within 2
business days
What is the CTO National Database? - correct answer ✔✔Keeps a list of companies who have failed to
meet disclosure requirements and prohibits trading in those securities
How can you check the registration of any firm or individual? - correct answer ✔✔The NRS (national
registration search)
What is a National Instrument? - correct answer ✔✔Has been adopted by all CSA jurisdictions
