IFSE – CIFC UPDATED Questions and
CORRECT Answers
1. To whom are you permitted to make an unsolicited telephone call to market new products
("cold-call") if they have signed up on the National Do Not Call List (DNCL)? - CORRECT
ANSWER- someone with whom you already have a business relation...
IFSE – CIFC UPDATED Questions and
CORRECT Answers
1. To whom are you permitted to make an unsolicited telephone call to market new products
("cold-call") if they have signed up on the National Do Not Call List (DNCL)? - CORRECT
ANSWER✔✔- someone with whom you already have a business relationship
Which of the following statements about Mutual Fund Dealers Association of Canada
(MFDA) is CORRECT? - CORRECT ANSWER✔✔- It is a self-regulatory organization for
the distribution side of the Canadian mutual funds industry.
What is the role of the Ombudsman for Banking and Investments (OBSI)? - CORRECT
ANSWER✔✔- OBSI helps resolve disputes between participating banking services and
investment firms and their clients.
Jeff Thomson is a newly licensed dealing representative. He has received a cash deposit of
$12,000 and would like you to guide him as to whether he is required to report the transaction
to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). What is
the minimum dollar amount of a cash deposit that Jeff is required to report to FINTRAC? -
CORRECT ANSWER✔✔- $10,000
5. Which of the following dealing representatives is in a conflict of interest situation? -
CORRECT ANSWER✔✔- Jonathan, who recommends mutual funds to his clients based on
which funds pay the highest commission.
Which of the following statements regarding ethical conduct is true? - CORRECT
ANSWER✔✔- Ethical conduct means conforming to approved standards.
The Mutual Fund Dealers Association of Canada (MFDA) has several rules dealing with
different aspects of the mutual fund business. Conduct Rule 2 offers details on how both you
and your employer are to carry out business. Which of the following is covered in Rule 2? -
CORRECT ANSWER✔✔- standard of conduct for ethical behaviour
Josephine is a newly registered dealing representative. Which of the following actions
constitute proper conduct expected of her? - CORRECT ANSWER✔✔- Protecting the
confidentiality of client information.
, Which statement about the registration process is TRUE? - CORRECT ANSWER✔✔-
Objections to your registration may be due to unacceptable past employment history in the
securities industry.
10. Which of the following statements is TRUE? - CORRECT ANSWER✔✔- All unethical
actions are breaches of the standard of conduct.
Under Mutual Fund Dealers Association of Canada (MFDA) Rules you have the duty to
disclose which of the following? - CORRECT ANSWER✔✔- outside business activities
Sarah, a mutual fund dealing representative, was reviewing the features and characteristics of
an emerging markets mutual fund that she was considering for a client. Based on her client's
objectives and risk profile, Sarah thought it would be a suitable investment. If Sarah makes
the following statements, in which instance would she be following best practices as a mutual
funds dealing representative? - CORRECT ANSWER✔✔- "The prospectus indicates that
this is a speculative fund that is suitable for investors with a growth objective and a high risk
tolerance."
Today is Sheldon's first day as a dealing representative. He is in the process of opening an
account for his client. He is not sure of how to furnish the relationship disclosures to his first
client. How should Sheldon provide the relationship disclosures required under the Client
Relationship Model (CRM)? - CORRECT ANSWER✔✔- Disclosures should be provided in
writing to the client on the account opening form or on a separate form.
Your clients , Ravi and Nuzah Patel, both 30 years of age, recently married. Ravi earns an
annual salary of $55,000 as an X-ray technician. Nuzah earns $72,000 per year as a
pharmacist. They are currently viewing houses in the $200,000-to-$225,000 price range and
hope to purchase a house within the next year. They plan to use their wedding gifts of cash
totalling $12,000 as a down payment. What is the Patels' investment objective for the $12,000
in cash? - CORRECT ANSWER✔✔- capital preservation
15. Gilles and Marielle Lachette, both 59, are the lucky winners of the latest home lottery
sponsored by their local children's hospital. The Lachettes sold their prize and received
$500,000 in cash after transaction costs. They have decided to use this money to retire early
within two years. Since the money will be used to supplement their retirement, they do not
want to take on unnecessary risk. Gilles is a city bus driver earning $49,000. Marielle works
as a bookkeeper, earning $35,000 annually. The Lachettes have paid down the mortgage on
their home, which is now worth $200,000. Their two children, now grown, have good jobs
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
