IFIC (Unit 2 Quiz) with correct answers
100%
The compliance department guides mutual funds dealers on ethical processing and standards - correct
answer ✔✔The ______________ department guides mutual funds dealers on ethical processing and
standards
Ethics is conformity to the approved standards. Unethical conduct does the opposite. - correct answer
✔✔____________ is conformity to the approved standards. ___________ conduct does the opposite.
MFDA Standards of Conduct:
Avoid disingenuous business and avoid any action that is detrimental to the public interest by dealing
with clients fairly and honestly - correct answer ✔✔MFDA Standards of Conduct:
Avoid disingenuous business and any action that is detrimental to the public interest by dealing with
clients fairly and __________
Compliance regime/department goal: Effective risk management - correct answer ✔✔Compliance
regime/department goal: ___________________
The compliance supervisor is usually: the CEO of a firm - correct answer ✔✔The compliance supervisor
is usually who?
The UDP (ultimate designated person) is the compliance department supervisor - correct answer ✔✔The
UDP (ultimate designated person) is the ____________ department supervisor
CCO (Chief Compliance Officer): An officer/partner designated by: the MF dealer.
- Responsible for establishing and maintaining compliance policies
- Must submit annual report to Board of Directors
- Must ensure individuals within a firm comply with the firm's policies. - correct answer ✔✔CCO (Chief
Compliance Officer): An officer/partner designated by:__________________
, The compliance department supports dealing reps through overseeing their registerable activities -
correct answer ✔✔The compliance department supports dealing reps through overseeing their
_____________ activities
The compliance department supports dealing reps through reviewing their trades and business practices
- correct answer ✔✔The compliance department supports dealing reps through reviewing their
__________ and business practices
Client relationship model (CRM)
Establishes the relationship between a dealing rep and their client through:
- relationship disclosure (written)
- Client communication
- Client reporting (account statements at least once every 3 months, only including transactions executed
by their MF dealer) - correct answer ✔✔__________ _________ _________ (CRM)
Establishes the relationship between a dealing rep and their client
Use of pre-signed forms is prohibited (by MFDA) - correct answer ✔✔Use of pre-signed forms is
________
If ever unsure of how to deal with an issue, check with the firm's compliance department - correct
answer ✔✔If ever unsure of how to deal with an issue, check with the firm's __________ department
Non-monetary or monetary benefits to or from a client must be approved by your MF dealer before
finalizing an arrangement - correct answer ✔✔Non-monetary or monetary benefits to or from a client
must be approved by ____________ before finalizing an arrangement
Any outside business activities (any other interactions done not on behalf of the MF dealer) done by a
dealing representatives must get written approval from their MF dealer - correct answer ✔✔Any outside
business activities done by a dealing representatives must get written approval from their ____________
100%
The compliance department guides mutual funds dealers on ethical processing and standards - correct
answer ✔✔The ______________ department guides mutual funds dealers on ethical processing and
standards
Ethics is conformity to the approved standards. Unethical conduct does the opposite. - correct answer
✔✔____________ is conformity to the approved standards. ___________ conduct does the opposite.
MFDA Standards of Conduct:
Avoid disingenuous business and avoid any action that is detrimental to the public interest by dealing
with clients fairly and honestly - correct answer ✔✔MFDA Standards of Conduct:
Avoid disingenuous business and any action that is detrimental to the public interest by dealing with
clients fairly and __________
Compliance regime/department goal: Effective risk management - correct answer ✔✔Compliance
regime/department goal: ___________________
The compliance supervisor is usually: the CEO of a firm - correct answer ✔✔The compliance supervisor
is usually who?
The UDP (ultimate designated person) is the compliance department supervisor - correct answer ✔✔The
UDP (ultimate designated person) is the ____________ department supervisor
CCO (Chief Compliance Officer): An officer/partner designated by: the MF dealer.
- Responsible for establishing and maintaining compliance policies
- Must submit annual report to Board of Directors
- Must ensure individuals within a firm comply with the firm's policies. - correct answer ✔✔CCO (Chief
Compliance Officer): An officer/partner designated by:__________________
, The compliance department supports dealing reps through overseeing their registerable activities -
correct answer ✔✔The compliance department supports dealing reps through overseeing their
_____________ activities
The compliance department supports dealing reps through reviewing their trades and business practices
- correct answer ✔✔The compliance department supports dealing reps through reviewing their
__________ and business practices
Client relationship model (CRM)
Establishes the relationship between a dealing rep and their client through:
- relationship disclosure (written)
- Client communication
- Client reporting (account statements at least once every 3 months, only including transactions executed
by their MF dealer) - correct answer ✔✔__________ _________ _________ (CRM)
Establishes the relationship between a dealing rep and their client
Use of pre-signed forms is prohibited (by MFDA) - correct answer ✔✔Use of pre-signed forms is
________
If ever unsure of how to deal with an issue, check with the firm's compliance department - correct
answer ✔✔If ever unsure of how to deal with an issue, check with the firm's __________ department
Non-monetary or monetary benefits to or from a client must be approved by your MF dealer before
finalizing an arrangement - correct answer ✔✔Non-monetary or monetary benefits to or from a client
must be approved by ____________ before finalizing an arrangement
Any outside business activities (any other interactions done not on behalf of the MF dealer) done by a
dealing representatives must get written approval from their MF dealer - correct answer ✔✔Any outside
business activities done by a dealing representatives must get written approval from their ____________
