Portfolio Management: Overview

Question 1

What is a Dealer?

Answer 1

person or company that is in the business of trading in securities in the capacity of a principal or agent

Question 2

Dealer Categories

Answer 2

Investment dealer
Mutual fund dealer
Scholarship plan dealer
Exempt market dealer
Restricted dealer

Question 3

Securities regulation in Canada falls under

Answer 3

Provincial and Territorial Securities Commissions

Question 4

What is the Canadian Securities Administrators

Answer 4

group of regulators from each provincial and territorial regulator charged with unifying regulation.

Question 5

What is high closing?

Answer 5

Entering a higher bid price for a security at closing to artificially increase the net asset value (NAV) of the fund to which it belongs.

Question 6

What is Late trading?

Answer 6

When a mutual fund company allows a trader to enter an order to purchase or sell, after the established cut-off time.

Question 7

What is a soft dollar arrangement?

Answer 7

Investment firm purchases services via commission dollars, rather than via an invoice for the goods or services.

ex: firm directing business to research provider

Question 8

what is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

Answer 8

• Agency responsible for ensuring compliance with the PCMLTFA
• Deals with reported and other information.

Question 9

Investment and financial services businesses are

required to submit regular reports to FINTRAC on the following four transaction categories:

Answer 9

• Suspicious transactions
• Large cash transactions (10k or more in less than 24h)
• Electronic funds transfer (10k or more in less than 24h)
• Terrorist property

Question 10

NI 31-103

Answer 10

explains the education and experience required for individuals who wish to be registered as a portfolio manager-advising representative.

Question 11

What is National Policy (NP) 47-201 and what does it state?

Answer 11

• (Trading Securities Using the Internet and Other Electronic Means)
• response of Canada’s regulators to dealing with the distribution of securities via the Internet.

Question 12

A fairness policy may cover trade allocations as follows:

Answer 12

• Trades can be allocated on the FIFO basis
• Block trades get same execution price & commission rate.
• Partially executed block trades should be allocated on a pro-rata basis.
• IPO and issues in high demand should be allocated, randomly, pro-rata- or on cycle schedule

Question 13

How many fiduciaries should an institutional investment fund have?

Answer 13

1