IFIC (Unit 3 Quiz) with complete
solutions graded A+
Strategic investment planning (SIP): used to make good recommendations and help clients meet their
objectives.
-Each MF dealer has their own (6 steps) SIP process to practice - correct answer ✔✔_______________
______________ ____________ (SIP): used to make good recommendations and help clients meet their
objectives.
6 steps of the Strategic investment planning (SIP):
1. Establish the client engagement (letter of engagement)
- Including MF dealer's new application form.
2. Gather client data and identify objectives
- KYC
3. Clarify client status, problems and opportunities
- Analyse KYC info
4. Identify strategies and present the plan
- Include statement certifying that the financial plan is based on my projections and not guaranteed.
5. Implement the plan
6. Monitor performance and update
- Compare actual performance with projected performance
- Review any changes in the client's personal circumstances - correct answer ✔✔6 steps of the
_________________ (___):
1. Establish the client engagement (letter of engagement)
2. Gather client data and identify objectives
3. Clarify client status, problems and opportunities
4. Identify strategies and present the plan
5. Implement the plan
6. Monitor performance and update
, Dealing reps must match a KYC information with the proposed KYP info - correct answer ✔✔Dealing reps
must match a _________ information with the proposed _________ info
Three (3) step suitability process:
1. Know your client (KYC)
2. Know your product (KYP)
3. Assess suitability
- Match characteristics of investment with client's needs - correct answer ✔✔Three (3) step suitability
process:
1.
2.
3.
Answer: A
It is essential that you know and understand the attributes and risks of the product. - correct answer
✔✔Bart is a new dealing representative. You have been asked to train and orient him. During the course
Bart wants to know the key concept pertaining to Know Your Product (KYP). Which of the following is the
key concept?
- It is essential that you know and understand the attributes and risks of the product.
- It is sufficient to know the representations about the product made by the issuer.
- It is sufficient to know that the product is on the approved list of the dealer firm.
- It is essential to know that no product can be recommended unless it has been initially recommended
by the securities commissions.
Know your client (KYC) is to make sure that any investment is suitable to a client's:
- Financial circumstances
- Risk tolerance
- Investment knowledge/needs/objectives - correct answer ✔✔_________________ is to make sure that
any investment is suitable to a client's:
- Financial circumstances
solutions graded A+
Strategic investment planning (SIP): used to make good recommendations and help clients meet their
objectives.
-Each MF dealer has their own (6 steps) SIP process to practice - correct answer ✔✔_______________
______________ ____________ (SIP): used to make good recommendations and help clients meet their
objectives.
6 steps of the Strategic investment planning (SIP):
1. Establish the client engagement (letter of engagement)
- Including MF dealer's new application form.
2. Gather client data and identify objectives
- KYC
3. Clarify client status, problems and opportunities
- Analyse KYC info
4. Identify strategies and present the plan
- Include statement certifying that the financial plan is based on my projections and not guaranteed.
5. Implement the plan
6. Monitor performance and update
- Compare actual performance with projected performance
- Review any changes in the client's personal circumstances - correct answer ✔✔6 steps of the
_________________ (___):
1. Establish the client engagement (letter of engagement)
2. Gather client data and identify objectives
3. Clarify client status, problems and opportunities
4. Identify strategies and present the plan
5. Implement the plan
6. Monitor performance and update
, Dealing reps must match a KYC information with the proposed KYP info - correct answer ✔✔Dealing reps
must match a _________ information with the proposed _________ info
Three (3) step suitability process:
1. Know your client (KYC)
2. Know your product (KYP)
3. Assess suitability
- Match characteristics of investment with client's needs - correct answer ✔✔Three (3) step suitability
process:
1.
2.
3.
Answer: A
It is essential that you know and understand the attributes and risks of the product. - correct answer
✔✔Bart is a new dealing representative. You have been asked to train and orient him. During the course
Bart wants to know the key concept pertaining to Know Your Product (KYP). Which of the following is the
key concept?
- It is essential that you know and understand the attributes and risks of the product.
- It is sufficient to know the representations about the product made by the issuer.
- It is sufficient to know that the product is on the approved list of the dealer firm.
- It is essential to know that no product can be recommended unless it has been initially recommended
by the securities commissions.
Know your client (KYC) is to make sure that any investment is suitable to a client's:
- Financial circumstances
- Risk tolerance
- Investment knowledge/needs/objectives - correct answer ✔✔_________________ is to make sure that
any investment is suitable to a client's:
- Financial circumstances
