Spring Sale Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmas50

CSI IFC - Investment Funds in Canada (IFC) Exam

Page: 15 / 15
Total 486 questions

A client had set up a voluntary accumulation plan to invest a set amount annually in December in an equity mutual fund. They decided to move to a pre-authorized plan where they will invest a smaller amount in this fund every week. What is likely the most significant benefit of this change?

A.

Enhancing the compounding effects.

B.

Lower fund management fees.

C.

Increases the possibilities to time the market.

D.

Gaining from disciplined savings habits.

What does PIPEDA require firms in Canada to do?

A.

Obtain consent only when using or publicly disclosing personal information

B.

Prohibit the disclosure of private information under any circumstance

C.

Verify client identification regarding specific transactions

D.

Provide service even if an individual refuses the collection of their information

A sales representative has accepted an instruction from a relatively new client to liquidate all positions and wire the proceeds. This request appears rather unusual and suspicious, so she escalates this to her compliance department. To whom should the compliance department report these transactions?

A.

Financial Transactions and Reports Analysis Centre of Canada.

B.

The Privacy Commissioner.

C.

Self-Regulatory Organization.

D.

Financial Action Task Force.

Reginald is a Dealing Representative, who feels pressure from management at the beginning of every calendar year, to open new registered retirement savings plans (RRSPs) and generate RRSP contributions. It is the end of February, and Reginald is close to reaching his personal sales objectives. He just finished an appointment with a prospective new client, Orel. Orel wants to open a tax-free savings account (TFSA) to build emergency savings. However, Reginald recommended to Orel that he should first contribute to an RRSP, and then use the tax savings for a TFSA contribution. With regards to account suitability, what can be said about Reginald's advice?

A.

Reginald is putting the client's interest first by informing Orel why he should change his investment strategy.

B.

Based on Orel's stated need, recommending an RRSP contribution is unsuitable.

C.

Recommending an investment solution that addresses two needs, is putting Reginald's client's interest first.

D.

By convincing Orel to contribute to an RRSP, instead of a TFSA, Reginald has put his client's interest first.