7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Conduct and Practices Handbook (CPH) EXAM -
2026 (Questions + Answers) with verified Answers
(Latest Update 2026) UPDATE!! Compliance Tips &
How to Pass Fast
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Terms in this set (278)
Formal Take-over Bid An offer made to the security holders of a
company to purchase the voting securities of a
company which, with the offeror's already-owned
securities, will in total exceed 20% of the
outstanding voting securities of the company.
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,7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Compliance Compliance is following the rules, whether those
rules are legal and regulatory requirements or
internal policies.
Confidentiality The ethical principle that a securities industry
professional will hold secret all information relating
to a client and the client's account unless the client
consents to its disclosure, or a formal request is
made by the appropriate regulators
Conflict of Interest A situation in which a registrant's personal or
financial interests conflict with those of a client or
the registrant's dealer member. In cases of
potential or actual conflict of interest, a client's
interests must be given priority and the conflict
should be disclosed.
Discretionary Account A securities account for which the client has given
a dealer member specific written authorization to
make decisions regarding the security, price,
quantity or timing of orders in the account.
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,7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Due Diligence Investigation into and verification of the details of a
potential investment, such as an examination of
operations and management, and the verification
of material facts.
Duty of Care An IA's duty to his client to ensure that he/she does
everything "reasonably practicable" to protect the
client's assets. This involves devoting the time and
attention necessary to make informed decisions.
Also known as Standard A
Fiduciary Duty A legal term that describes a high degree of duty
of care. Criteria that may be used to determine
whether a trust exists in an IA-client relationship
include a high degree of reliance by the client on
the IA's advice and the vulnerability of the client. A
similar concept, "Contract of Mandate", exists in
Quebec under civil law.
Know Your Client (KYC) Rule The cardinal rule in making investment
recommendations. The IA must know all relevant
information about every client and every order to
ensure that his/her recommendations to clients are
suitable.
Personal Information Protection and The Act that governs each dealer member's
Electronic Documents Act (PIPEDA) information-gathering processes and regulates
how firms may use and disclose the personal
information that is collected in the course of doing
business.
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, 7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Registrant Standards of Conduct The Standards of Conduct amplify the Code of
Ethics and set out certain specifics of required
behavior. These requirements are based in large
part on the provincial Securities Acts and the SRO
rules.
Suitability A registrant's major concern in making investment
recommendations. Unless a suitability exemption
applies, all information about a client and a security
must be analyzed to determine whether a
particular investment is suitable for a client.
Unsolicited Order An order entered by a client where neither the
client's IA or his/her dealer member recommended
the order.
Autorité des marchés financiers The body that administers the regulatory
(Financial Services Authority) (AMF) framework surrounding Québec's financial sector
securities sector, the distribution of financial
products and services sector, the financial
institutions sector and the compensation sector.
https://quizlet.com/1195379534/conduct-and-practices-handbook-cph-exam-2026-questions-answers-with-verified-answers-latest-update-2026-updat… 4/45
Conduct and Practices Handbook (CPH) EXAM -
2026 (Questions + Answers) with verified Answers
(Latest Update 2026) UPDATE!! Compliance Tips &
How to Pass Fast
Save Add to calendar
Play your way to mastery with fun games
Blast
Terms in this set (278)
Formal Take-over Bid An offer made to the security holders of a
company to purchase the voting securities of a
company which, with the offeror's already-owned
securities, will in total exceed 20% of the
outstanding voting securities of the company.
https://quizlet.com/1195379534/conduct-and-practices-handbook-cph-exam-2026-questions-answers-with-verified-answers-latest-update-2026-updat… 1/45
,7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Compliance Compliance is following the rules, whether those
rules are legal and regulatory requirements or
internal policies.
Confidentiality The ethical principle that a securities industry
professional will hold secret all information relating
to a client and the client's account unless the client
consents to its disclosure, or a formal request is
made by the appropriate regulators
Conflict of Interest A situation in which a registrant's personal or
financial interests conflict with those of a client or
the registrant's dealer member. In cases of
potential or actual conflict of interest, a client's
interests must be given priority and the conflict
should be disclosed.
Discretionary Account A securities account for which the client has given
a dealer member specific written authorization to
make decisions regarding the security, price,
quantity or timing of orders in the account.
https://quizlet.com/1195379534/conduct-and-practices-handbook-cph-exam-2026-questions-answers-with-verified-answers-latest-update-2026-updat… 2/45
,7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Due Diligence Investigation into and verification of the details of a
potential investment, such as an examination of
operations and management, and the verification
of material facts.
Duty of Care An IA's duty to his client to ensure that he/she does
everything "reasonably practicable" to protect the
client's assets. This involves devoting the time and
attention necessary to make informed decisions.
Also known as Standard A
Fiduciary Duty A legal term that describes a high degree of duty
of care. Criteria that may be used to determine
whether a trust exists in an IA-client relationship
include a high degree of reliance by the client on
the IA's advice and the vulnerability of the client. A
similar concept, "Contract of Mandate", exists in
Quebec under civil law.
Know Your Client (KYC) Rule The cardinal rule in making investment
recommendations. The IA must know all relevant
information about every client and every order to
ensure that his/her recommendations to clients are
suitable.
Personal Information Protection and The Act that governs each dealer member's
Electronic Documents Act (PIPEDA) information-gathering processes and regulates
how firms may use and disclose the personal
information that is collected in the course of doing
business.
https://quizlet.com/1195379534/conduct-and-practices-handbook-cph-exam-2026-questions-answers-with-verified-answers-latest-update-2026-updat… 3/45
, 7/19/26, 8:27 AM Conduct and Practices Handbook (CPH) EXAM - 2026 (Questions + Answers) with verified Answers (Latest Update 2026) UPDATE…
Registrant Standards of Conduct The Standards of Conduct amplify the Code of
Ethics and set out certain specifics of required
behavior. These requirements are based in large
part on the provincial Securities Acts and the SRO
rules.
Suitability A registrant's major concern in making investment
recommendations. Unless a suitability exemption
applies, all information about a client and a security
must be analyzed to determine whether a
particular investment is suitable for a client.
Unsolicited Order An order entered by a client where neither the
client's IA or his/her dealer member recommended
the order.
Autorité des marchés financiers The body that administers the regulatory
(Financial Services Authority) (AMF) framework surrounding Québec's financial sector
securities sector, the distribution of financial
products and services sector, the financial
institutions sector and the compensation sector.
https://quizlet.com/1195379534/conduct-and-practices-handbook-cph-exam-2026-questions-answers-with-verified-answers-latest-update-2026-updat… 4/45
