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IFSE - CIFC Practice Exam with complete solutions 2024_2025.
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IFSE - CIFC Practice Exam with complete solutions 2024_2025.
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IFSE - CIFC Practice Exam with completesolutions 2024/2025
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)? - 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? - 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)? -
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? - ANSWER-$10,000
5. Which of the following dealing representatives is in a conflict of interest
situation? - 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? - 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? - 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? - ANSWER-Protecting the
confidentiality of client information.
Which statement about the registration process is TRUE? - 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? - 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? - 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? - 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)? - 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? - 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 and
are financially independent. The only financial asset they own is an RRSP in
Marielle's name worth $78,000. The RRSP holds five guaranteed investment
certificates (GICs) with maturities between one to five years. Given that the
Lachettes have no investment knowledge or experience, they req - ANSWER-low
tolerance for risk
Diego, a mutual fund dealing representative, is reviewing his notes from a recent
client meeting. His client, Linda, wants to retire next year with an annual pre-tax
income of $50,000. However, she does not have the financial resources necessary
to do so. Before his next meeting with Linda, Diego prepares several scenarios
for her to review. The first scenario requires Linda to delay her retirement for
another five years. The second scenario requires Linda to accept a pre-tax
income of $45,000 per year. The third scenario requires Linda to take greater
investment risk with her portfolio. Diego will discuss these scenarios with Linda
to determine which one is appropriate. Where are Diego and Linda in the strategic
investment planning process? - ANSWER-clarify client status, problems and
opportunities
Which of the following statements regarding the suitability process is true? -
ANSWER-Suitability is a cyclical multi-step process.
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