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CIFC > Regulatory Environment & Mutual Fund Legislation > Flashcards

Regulatory Environment & Mutual Fund Legislation Flashcards

1
Q

In Canada, the sell of mutual funds are governed via some ………

A

regulatory bodies and regulations

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2
Q

In fact, the sell of mutual funds are………. and ………. by some…….&……. organizations

A

monitored and governed
federal and provincial

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3
Q

As a Dealing Representative, you are a member of………and you must adhere to……..designed to protect the interest of both……….&………..

A

profesional team
regulations
investing public
industry participants

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4
Q

In Canada’s mutual fund industry, the regulatory bodies are at the……….&………level.

A

national
provincial&national

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5
Q

At provincial and territorial level, each province and territory has ……………, usually referred as…………

A

its own regulatory body
securities commission/regulator

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6
Q

which organizations do play important role at the national level in the Canadian mutual funds industry?

A

CSA (Canadian Securities Administrators)
MFDA (Mutual Funds Dealers Association of Canada)
IIROC (Investment Industry Regulatory Organization of Canada)
OBSI (Ombudsman for Banking Services and Investments)
OSFI (Office of Superintendent Financial Institutions Canada)

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7
Q

the securities commission administers the ………….. and the …………….

A

jurisdiction’s securities Act
equivalent legislations

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8
Q

each securities commission sets ……………. for registration and has the power to ……… or ……….. the registration

A

its own standards
grant or revoke

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9
Q

what are the securities commission/regulator roles?

A

*establishing strict standards for disclosure of information before new securities are offered to public
*reviewing and approving mutual fund and new issue prospectus before they can be sold in the market
*registering the companies and individuals that sell securities in their province and territories
*registering the companies and individuals that manage mutual fund portfolios in their province and territories
*investigating investors’ complaints against companies and their employees
*enforcing securities regulations governing the selling and buying of securities
*disciplining the companies and individuals found to contravene regulations

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10
Q

securities commissions/regulators generally have mandate to….

A

*promote fair and efficient capital market
*promote confidence in capital market
*protect investors from unfair, improper and fraudulent activities
*reduce systematice risk

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11
Q

The registered companies and individuals, regulated by provincial and territorial securities commissions/ regulators, the rules, regulations, and legislations,……… apply to ………. , are not extended to ……….

A

specifically
securities
related investment products

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12
Q

The registered companies and individuals, regulated by self regulatory organizations (SROs), the rules, regulations, and legislations apply on ……….. and ………. including …………

A

securities
related investment products
structured products

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13
Q

Who are the members of SRO?

A

mutual fund dealers who are the member of MFDA
Investment dealers who are the member of IIROC

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14
Q

What is new issue?

A

new issue is a new security which is issued, registered and sold for the first time in the market.

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15
Q

what is your two important roles as the Dealing Representative?

A
  1. register with your securities regulator
  2. adhere to your securities regulator’s rules, regulations, and standards
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16
Q

CSA is a …………. of mutual fund industry composed of members from ……………… In fact, it is a ……… of ……… to ………,…….., and ……………in the Canadian capital market

A

policy-making body
each securities commission/regulator
forum
Canadian securities commissions
improve, harmonize, and implements regulations

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17
Q

CSA mandate includes these goals….

A

*foster fair and efficient market
*protect investors from unfair, improper, and fraudulent activities
*to reduce risk to the market’s integrity and to investor confidence in the market

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18
Q

CSA pursues its goals through……….. to harmonize ………, ………., and………

A

national system
securities regulations, policies, and practices

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19
Q

MFDA is a ………….. of mutual fund industry.
It is a………..organization whose members are…………

A

distribution side
self regulatory
Mutual fund dealers

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20
Q

MFDA is structured as …………….. corporation whose main responsibilities are to …………….. and …………….and ………….. of its members and ……………. with the aim of ………………. and ……………..in the Canadian mutual fund industry

A

non-for-profit
regulate the operations
standard the practice and business conduct
Dealing Representatives
enhancing investor protection
strengthening public confidence

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21
Q

Mutual fund dealers are licensed by………

A

securities regulators/commissions

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22
Q

MFDA is empowered by………. in each ……………

A

securities commissions
enumerated jurisdiction

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23
Q

MFDA mandate is to follow these goals

A

*admit members
*perform compliance review
*to enforce rules through transparent disciplinary process that ends in fines, suspension, and termination in membership

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24
Q

MFDA has a separate …………. called as …………..

A

legal entity
investor protection corporation (IPC)

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25
Q

IPC protects the eligible customers ………. due to MFDA……..

A

loses
member’s insolvency

26
Q

IPC provides coverage of maximum ………. in the ……. account and maximum of ……….. in the ………. account. This coverage is only extended to accounts held by …………., and it is extended to the account held by …………. of fund companies

A

1 million dollar, general
1 million dollar, retirement
MFDA nominee name
client name

27
Q

All ………. must be a member of MFDA

A

mutual fund dealers

28
Q

………. is not a regulator

A

OBSI

29
Q

OBSI is an …….. and ………. organization, try to ………… between participating …………., …………, and ………….

A

independent, impartial
resolve dispute
banking services, business companies, and their clients

30
Q

As of …………….., all dealers and advisors must be a member of OBSI

A

1, August, 2014

31
Q

OBSI can provide recommendation to ………. up to……. dollar

A

settle claims
350,000

32
Q

OBSI is an alternative to …….., so OBSI provides a mechanism to ensure its members …………..

A

a legal system
deal fairly with their clients

33
Q

What are the monitoring bodies in Quebec?

A

AMF
CSF

34
Q

AMF is ………

A

Quebec securities commission/regulator

35
Q

AMF has further delegated its responsibilities of ……… and ……… to ……….

A

ongoing regulatory compliance
continuing education requirements
CSF

36
Q

In Quebec, all mutual fund dealers must be registered under ……….

A

AMF

37
Q

CSF is ……….. organization whose members are ………. and …….

A

self regulatory
Dealing Representatives
financial planner

38
Q

CSF mission is to ………… through ……… and ……….

A

protect consumers
maintaining discipline
overseeing training and ethics of its members

39
Q

Quebec is the only province where registration for …….. is a must

A

Financial activities

40
Q

CSF is empowered by AMF to have these responsibilities……

A

*admit members
*investigate complaints
*enforce rules through disciplinary process that results in fines, suspension, and termination in membership

41
Q

IIROC is ………….. whose members are

A

national self regulatory organization
investment dealers

42
Q

IIROC principle activities are ……..

A

*protection of investing public
*self-regulation
*education
*liaison with other financial institutions
*liaison with provincial securities commissions
*public policy representation
*maintenance of orderly marketing and trading
*publication of statistical records

43
Q

IIROC main objectives are ……., ……., and ……… in its membership

A

*create a favourable environment for investors
*encouraging high practice of standard
*enforcing regulatory compliance

44
Q

OSFI is …….. supervisor and regulator of …….. companies

A

primary
insurance companies

45
Q

OSFI is …….. regulated to ………. institutions and ………..

A

federally
deposit-taking
private pension plan

46
Q

OSFI doesn’t regulate……. and ……..

A

mutual fund dealers and investments dealers

47
Q

OSFI mandate is to ……….

A

*protect the right and interest of depositors, policyholders, pension plan members, and creditors of financial institutions
*contribute to public confidence in Canadian financial industry

48
Q

Mutual fund industry is mainly regulated by …….., ………, and ………

A

securities act
national instruments developed by CSA
MFDA’S rules

49
Q

Mutual funds are ………., hence, they are governed by ………..

A

securities
securities act

50
Q

administering and enforcing of securities act rest with ………

A

securities commission/regulator

51
Q

national instruments are …………. developed by CSA

A

harmonized regulations

52
Q

main instruments impact mutual funds are ……

A

*mutual funds
*mutual fund sales practice
*mutual fund prospectus disclosure
*registration requirements and exemption

53
Q

Registration requirements and exemption provides ……….. for registration of ………… and ……….. with provincial securities commissions

A

harmonized registration rules
companies and individuals

54
Q

Mutual fund prospectus disclosure ensures ……….. disclose the information that investors should know while …….. whether to invest or remain invested in a fund

A

mutual fund
deciding

55
Q

Key disclosure documents are……

A

fund facts
simplified prospectus
annual information form

56
Q

Mutual fund is the main …….. which regulates how the mutual funds are ……, …….., and ………

A

national instrument
managed, bought, and sold

57
Q

Mutual fund sales practices ensures mutual funds are sold on the basis of ………… and …………. of ……….

A

what is suitable for
what is in the interest of
investors

58
Q

Mutual fund sales practices sets …………. to be followed by ……., ……….., ………….., and …………… when distributing mutual funds

A

minimum standard of conduct
managers
Dealing Representatives
registered dealers
principal distributors

59
Q

MFDA sets out some detailed requirements for its members, they are as follows:

A

insurance
supervision
capital requirements
business conduct
business structure
client reporting
books and records
suitability and training review

60
Q

MFDA regulates ………

A

Dealing Representative

CIFC (3 decks)

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