Portfolio Management Techniques

Question 1

What is a portfolio manager?

Answer 1

An individual or group of individuals who advise clients (individuals or institutions) on investments appropriate to their circumstances and objectives 1.6

Question 2

What is National Instrument NI 31-103?

Answer 2

Explains the education and experience required for an individual to become registered as a portfolio manager-advertising representative. 1.6

Question 3

Which rule sets out the experience to become a portfolio manager?

Answer 3

IIROC Rule 2900 explains the education and experience required for becoming a portfolio management.

Question 4

What is the CFA Program?

Answer 4

Offered exclusively by the CFA Institute. Three six hour exams, and 48 hours of approved work experience. 1.6

Question 5

What is the CIM?

Answer 5

Achieved by taking courses only through the CSI. Composed of three courses. Advantage: focuses on the marketplace, financial markets and the Canadian regulatory environment.

Question 6

what is the IIROC?

Answer 6

The Investment Industry Regulatory Organization of Canada. 1.7

Question 7

Which Organization must firms be registered with in Ontario?

Answer 7

The Ontario Securities Commission (OSC), the IIROC or MFDA. 1.7

Question 8

Name five Dealer Categories

Answer 8

Investment Dealer
Mutual Fund Dealer
Scholarship Plan Dealer
Exempt Market Dealer
Restricted Dealer 1.7

Question 9

What is an Investment Dealer?

Answer 9

Trades Securities as agents or principals. Member of IIROC. Can act as an underwriter

Question 10

What is a Mutual Fund Dealer?

Answer 10

Deals exclusively in mutual funds. Must be a member of MFDA.

Question 11

What is a Scholarship Plan Dealer?

Answer 11

Restricted to scholarship plans, educational plans, or educational trust investments.

Question 12

What is Exempt Market Dealer?

Answer 12

A dealer who trades or advises in the exempt market such as private placements. Formerly known as Limited Market Dealer.

Question 13

What is a Restricted Dealer?

Answer 13

Open category, allowing for flexible registration.

Question 14

Name two Adviser Categories Under NI 31-103?

Answer 14

Portfolio Manager

Restricted Portfolio Manager 1.7

Question 15

What is a Portfolio Manager?

Answer 15

Persons or Companies.
Manage Investment Portfolios
Have discretionary authority granted by client

Question 16

What is a Restricted Portfolio Manager?

Answer 16

Persons or Comaniew who act as an adviser in accordance with terms conditions, restrictions and retirements applied to its registration

Question 17

Who is required to be registered under securities legislation to be able to act on behalf of a registered firm?

Answer 17

Dealing Representative
Advising Representative
Associate Advising Representative
Ultimate Designated Person
Chief Compliance Office. 1.8

Question 18

Portfolio Management Educational and Experience Requirements - Describe?

Answer 18

1. RR
2. Portfolio Manager-Advising Rep
   a.
   b.
3. Portfolio Manager - Associate Advising Representative.
   a.
   b.
4. Portfolio Manager
   a.
   b.
   c

Question 19

What are the definitions of the Manager, Portfolio Advisers and Sub-advisers? 1.9

Answer 19

The Manager

Th Portfolio Adviser

Th Sub-Adviser