Free Canadian Investment Regulatory Exam Practice Questions

A.  

To regulate investment advisors and Investment Dealers

B.  

To manage clearing and settlement of trades

C.  

To enforce securities laws across provinces

D.  

To monitor and report on suspicious financial transactions

A.  

Seek advice from a self-regulatory authority

B.  

Recommend an alternative action that is suitable

C.  

Report the request as an unacceptable trade

D.  

Refuse to undertake the investment strategy

A.  

Share ownership often offers fixed payments and guaranteed principal at maturity

B.  

Share ownership provides limited financial risk but no influence on company direction

C.  

Shareholders are generally repaid before bondholders in the event of insolvency

D.  

Share ownership provides potential capital gains and claim on dividends if distributed

A.  

Be independently responsible for monitoring and compliance enforcement

B.  

Obtain prior written consent of the Investment Dealer

C.  

Ensure it is closely aligned with their duties to the Investment Dealer

D.  

Only recommend products and services offered by the Investment Dealer

A.  

A summary of penalties imposed on employees responsible for the shortfall

B.  

A list of high-risk investments used to improve capital reserves

C.  

A request to waive the capital requirement for a defined period

D.  

A detailed timeline for restoring compliance and actions taken to mitigate risks

A.  

The fund pools money from multiple investors to invest in a diversified portfolio

B.  

The client owns individual securities within the pool

C.  

The client has full control over individual security selection within the fund

D.  

The fund typically charges a flat fee regardless of the client's contribution size

A.  

To ensure the dealer earns more commission from larger leveraged trades

B.  

To enable clients to maximize their investment returns using borrowed funds

C.  

To allow investors to trade higher-risk securities without additional funding

D.  

To reduce risk by ensuring investors have sufficient capital for losses

A.  

An order that includes a client order as well as a non-client order or principal order, or both

B.  

Buy a security or derivative to be executed at a specified maximum price

C.  

An order for the purchase or sale of a listed or a quoted security at the closing sale price

D.  

Buy a security or a derivative to be executed upon entry to a marketplace at the best ask price

A.  

Accepting non-monetary consideration in return for priority treatment

B.  

Borrowing from a client whose normal course of business includes lending money

C.  

Acting as Power of Attorney where the client is a Related Person

D.  

Borrowing from a client's firm whose normal course of business includes lending money

A.  

They are subject to a flat tax rate, regardless of the income they generate

B.  

They invest in a diversified portfolio of assets and pass on income to unitholders

C.  

They issue shares that can be traded on the stock exchange, similar to stocks

D.  

They are restricted to investing in government bonds and cannot hold equity investments