Chapter 3 Canadian Regulatory Environment KT

Question 1

The Canadian investment industry’s national self-regulatory organization.

Answer 1

Investment Industry Regulatory Organization of Canada (IIROC)

Question 2

The Self-Regulatory Organization (SRO) that regulates the distribution (dealer) side of the mutual fund industry in Canada.

Answer 2

Mutual Fund Dealers Association (MFDA)

Question 3

A web-based system that permits mutual fund salespersons and investment advisors to file applications for registration electronically.

Answer 3

National Registration Database (NRD)

Question 4

A person who is licensed to sell securities but is not permitted to give investment advice.

Answer 4

investment representative

Question 5

Provides protection for eligible customers of insolvent MFDA member firms.

Answer 5

Investor Protection Corporation

Question 6

Independent organization that investigates customer complaints against financial services providers.

Answer 6

Ombudsman for Banking Services and Investments (OBSI)

Question 7

The general principle underlying Canadian securities legislation. All pertinent facts by those offering securities for sale to the public must be disclosed.

Answer 7

full, true, and plain disclosure

Question 8

Protects eligible customers in the event of the insolvency of an IIROC dealer member; sponsored solely by IIROC, funded by dealer members.

Answer 8

Canadian Investor Protection Fund (CIPF)

Question 9

Forum for the 13 securities regulators of Canada’s provinces and territories to co-ordinate and harmonize the regulation of the Canadian capital markets.

Answer 9

Canadian Securities Administrators (CSA)

Question 10

A method of dispute resolution in which an independent arbitrator is chosen to assist aggrieved parties recover damages.

Answer 10

arbitration

Question 11

Recognized by Securities Administrators, with powers to establish and enforce industry regulations to protect investors and to maintain fair, equitable, and ethical practices in the industry.

Answer 11

self-regulatory organization (SRO)

Question 12

A list, administered by the CRTC, where Canadians can register their telephone numbers to prohibit telemarketers and clients of telemarketers from calling the number.

Answer 12

National Do Not Call List

Question 13

A federal Crown Corporation providing deposit insurance against loss (up to $100,000 per depositor) when a member institution fails.

Answer 13

Canada Deposit Insurance Corporation (CDIC)

Question 14

A federal body established by the United States Congress to protect investors in the U.S.

Answer 14

Securities and Exchange Commission (SEC)

Question 15

Administers the regulatory framework surrounding Québec’s financial sector including securities, distribution of financial products and services, and financial institutions.

Answer 15

Autorité des marchés financiers (AMF)

Question 16

Federal regulatory agency whose main responsibilities regarding insurance companies and segregated funds are to ensure that the companies issuing the funds are financially solvent.

Answer 16

Office of the Superintendent of Financial Institutions (OSFI)

Question 17

Role of dealers and all of their employees who are responsible for protecting the markets from potentially illegal client activities; Universal Market Integrity Rules set out specific rules.

Answer 17

gatekeeper

Question 18

Making a practice, directly or indirectly, of taking the opposite side of the market to clients, or effecting a trade for the advisor’s own account before effecting a trade for a client.

Answer 18

front running