CSI IFC Exam Part 1
5 5 5 5
Client5Service5-
5correct5answer✔ ✔ fully5understanding5and5satisfying5the5unique5needs5of5each5clie
nt
Compliance5-5correct5answer✔ ✔
following5the5rules,5whether5those5rules5are5legal5requirements5or5dealer5policies
Disclosure5-5correct5answer✔ ✔
Includes5under5reports,5regular5corporate5financial5reports,5timely5disclosure5of5materi
al5changes5in5the5affairs5of5a5company5and5examination5of5all5prospectuses5to5ensure5t
hat5there5is5full,5true5and5plain5disclosure.5Proper5disclosure5allows5investors5to5make5i
nformed5choices.
Financial5Circumstances5-5correct5answer✔ ✔
Includes5the5size5of5the5client's5investment5portfolio,5employment5and5investment5inco
me,5whether5the5source5of5employment5income5is5secure,5and5the5level5of5periodic5exp
enses5incurred.
Financial5Goals5and5Objectives5-5correct5answer✔ ✔
client's5reason5for5selecting5a5given5investment.5May5be5expressed5in5terms5of5the5ty
pes5of5desired5returns5(such5as5growth5or5investment5income)5or5in5terms5of5desired5in
vestment5characteristics5such5as5safety5or5liquidity.
Financial5Planner5-5correct5answer✔ ✔
A5professional5holding5a5recognized5designation5(CFP,5ChP5or5PFP)5who5assists5clie
nts5in5establishing5and5reaching5financial5goals5by5analyzing5current5finances5and5maki
ng5recommendations5on5reaching5financial5goals.5Beyond5the5scope5of5a5mutual5funds5
sales5rep.
Fund5Facts5-5correct5answer✔ ✔
a5short5mutual5fund5document5designed5to5give5investors5key5information5that5is5relev
ant5to5their5investment5decisions,5including5facts5about5the5fund5itself,5performance5hist
ory,5investments5and5the5cost5of5investing5in5the5fund.
Investment5Fund5-5correct5answer✔ ✔
offers5investors5an5interest5in5a5pool5of5securities.5Mutual5funds5included5are5a5type
Investment5Horizon5-5correct5answer✔ ✔
The5length5of5time5within5which5an5investor5expects5a5given5investment5to5satisfy5thei
r5investment/return5objectives
, Know5your5client5-5correct5answer✔ ✔
Mutual5funds5advisor5must5use5due5diligence5to5learn5the5essential5facts5relevant5to5e
very5client5and5every5order.5Info5concerning5client's5financial5status5(both5income5and5n
et5worth),5family5an5d5other5commitments,5as5well5as5financial5goals
Know5your5product5-5correct5answer✔ ✔
understand5characteristics5such5as5risk5level,5fees,5type5of5income5generated,5and5ta
x5consequences5of5all5the5funds5offered5for5sale
legal5responsibility5-5correct5answer✔ ✔
the5responsibility5of5the5investment5guide5to5ensure5that5each5client5only5buys5suitabl
e5investments.
mutual5fund5-5correct5answer✔ ✔
An5unlimited5number5of5unites5are5issued5by5the5fund5and5they5are5bought5and5sold5d
irectly5by5the5fund5itself.5The5value5of5a5unit5is5not5determined5by5market5demand5but5b
y5the5net5asset5value5of5the5securities5in5the5fund's5portfolio
Mutual5Fund5Sales5Representative5-5correct5answer✔ ✔
individuals5who5are5licensed5to5sell5and5provide5advice5on5mutual5funds5products5to5t
heir5clients5in5the5province5or5territory5where5they5have5been5licensed.
net5worth5-5correct5answer✔ ✔
whatever5an5individual5has5accumulated5to5date5is5their5net5worth.5It5is5the5difference5
between5total5assets5and5total5liabilities
personal5circumstances5-5correct5answer✔ ✔
these5include5client's5age,5whether5they5are5single5or5married,5how5many5children5the
y5have,5and5what5kind5of5lifestyle5they5wish5to5maintain.5They5have5major5impact5on5th
e5ability5of5the5investor5to5bear5risk5and5on5the5financial5goals5selected.
professional5responsibility5-5correct5answer✔ ✔
The5responsibility5of5the5investment5guide5to5provide5the5best5client5service5possible5
and5to5refuse5to5sell5a5product5that5is5felt5to5be5unsuitable.
prospectus5-5correct5answer✔ ✔
A5legal5document5which5must5accompany5all5new5security5issues.5It5primarily5outlines
5the5financial5condition5of5the5issuer,5the5use5to5which5the5funds5raised5will5be5put,5and5
the5risk5associated5with5the5securities.
risk5-5correct5answer✔ ✔ volatility
suitability5-5correct5answer✔ ✔
A5registrant's5major5concern5in5making5investment5recommendations.5All5information5
5 5 5 5
Client5Service5-
5correct5answer✔ ✔ fully5understanding5and5satisfying5the5unique5needs5of5each5clie
nt
Compliance5-5correct5answer✔ ✔
following5the5rules,5whether5those5rules5are5legal5requirements5or5dealer5policies
Disclosure5-5correct5answer✔ ✔
Includes5under5reports,5regular5corporate5financial5reports,5timely5disclosure5of5materi
al5changes5in5the5affairs5of5a5company5and5examination5of5all5prospectuses5to5ensure5t
hat5there5is5full,5true5and5plain5disclosure.5Proper5disclosure5allows5investors5to5make5i
nformed5choices.
Financial5Circumstances5-5correct5answer✔ ✔
Includes5the5size5of5the5client's5investment5portfolio,5employment5and5investment5inco
me,5whether5the5source5of5employment5income5is5secure,5and5the5level5of5periodic5exp
enses5incurred.
Financial5Goals5and5Objectives5-5correct5answer✔ ✔
client's5reason5for5selecting5a5given5investment.5May5be5expressed5in5terms5of5the5ty
pes5of5desired5returns5(such5as5growth5or5investment5income)5or5in5terms5of5desired5in
vestment5characteristics5such5as5safety5or5liquidity.
Financial5Planner5-5correct5answer✔ ✔
A5professional5holding5a5recognized5designation5(CFP,5ChP5or5PFP)5who5assists5clie
nts5in5establishing5and5reaching5financial5goals5by5analyzing5current5finances5and5maki
ng5recommendations5on5reaching5financial5goals.5Beyond5the5scope5of5a5mutual5funds5
sales5rep.
Fund5Facts5-5correct5answer✔ ✔
a5short5mutual5fund5document5designed5to5give5investors5key5information5that5is5relev
ant5to5their5investment5decisions,5including5facts5about5the5fund5itself,5performance5hist
ory,5investments5and5the5cost5of5investing5in5the5fund.
Investment5Fund5-5correct5answer✔ ✔
offers5investors5an5interest5in5a5pool5of5securities.5Mutual5funds5included5are5a5type
Investment5Horizon5-5correct5answer✔ ✔
The5length5of5time5within5which5an5investor5expects5a5given5investment5to5satisfy5thei
r5investment/return5objectives
, Know5your5client5-5correct5answer✔ ✔
Mutual5funds5advisor5must5use5due5diligence5to5learn5the5essential5facts5relevant5to5e
very5client5and5every5order.5Info5concerning5client's5financial5status5(both5income5and5n
et5worth),5family5an5d5other5commitments,5as5well5as5financial5goals
Know5your5product5-5correct5answer✔ ✔
understand5characteristics5such5as5risk5level,5fees,5type5of5income5generated,5and5ta
x5consequences5of5all5the5funds5offered5for5sale
legal5responsibility5-5correct5answer✔ ✔
the5responsibility5of5the5investment5guide5to5ensure5that5each5client5only5buys5suitabl
e5investments.
mutual5fund5-5correct5answer✔ ✔
An5unlimited5number5of5unites5are5issued5by5the5fund5and5they5are5bought5and5sold5d
irectly5by5the5fund5itself.5The5value5of5a5unit5is5not5determined5by5market5demand5but5b
y5the5net5asset5value5of5the5securities5in5the5fund's5portfolio
Mutual5Fund5Sales5Representative5-5correct5answer✔ ✔
individuals5who5are5licensed5to5sell5and5provide5advice5on5mutual5funds5products5to5t
heir5clients5in5the5province5or5territory5where5they5have5been5licensed.
net5worth5-5correct5answer✔ ✔
whatever5an5individual5has5accumulated5to5date5is5their5net5worth.5It5is5the5difference5
between5total5assets5and5total5liabilities
personal5circumstances5-5correct5answer✔ ✔
these5include5client's5age,5whether5they5are5single5or5married,5how5many5children5the
y5have,5and5what5kind5of5lifestyle5they5wish5to5maintain.5They5have5major5impact5on5th
e5ability5of5the5investor5to5bear5risk5and5on5the5financial5goals5selected.
professional5responsibility5-5correct5answer✔ ✔
The5responsibility5of5the5investment5guide5to5provide5the5best5client5service5possible5
and5to5refuse5to5sell5a5product5that5is5felt5to5be5unsuitable.
prospectus5-5correct5answer✔ ✔
A5legal5document5which5must5accompany5all5new5security5issues.5It5primarily5outlines
5the5financial5condition5of5the5issuer,5the5use5to5which5the5funds5raised5will5be5put,5and5
the5risk5associated5with5the5securities.
risk5-5correct5answer✔ ✔ volatility
suitability5-5correct5answer✔ ✔
A5registrant's5major5concern5in5making5investment5recommendations.5All5information5
