Core Curriculum Chapter 18 Flashcards
BANKING REGULATION - What legislation governs banking in Canada?
The Bank Act, which regulates banking structures and operations.
INVESTOR PROTECTION - How do securities regulators protect investors?
By enforcing laws against insider trading, stock manipulation, and ensuring market transparency.
CAPITAL REQUIREMENTS - How are banks and insurers regulated to prevent failure?
They must meet capital reserve requirements set by OSFI and LICAT for life insurers.
CDIC COVERAGE - How much deposit insurance does the CDIC provide?
Up to $100,000 per account type per institution for deposits in banks and federal credit unions.
INSURANCE PROTECTION - What does Assuris cover if a life insurer fails?
It guarantees 90% of death benefits, income benefits, and cash values.
PACICC -What does PACICC cover?
Protects home, auto, and liability insurance policies if a P&C insurer fails.
CONSUMER DISCLOSURE - Why is clear financial product disclosure important?
It ensures clients understand risks, fees, and terms, preventing misleading sales practices.
