Volume 1- Chapter 3 Flashcards
What is the primary responsibility of each province and territory in Canada regarding the securities industry?
Creating legislation and regulation for the securities industry.
What is the role of the Canadian Securities Administrators (CSA)?
To improve, coordinate, and harmonize regulation of the Canadian capital markets.
True or False: The CSA has developed national policies that apply in every provincial and territorial jurisdiction.
True.
What does a self-regulatory organization (SRO) do?
Regulates its own members and enforces conformity with securities legislation.
What is the Canadian Investment Regulatory Organization (CIRO)?
Canada’s national self-regulatory organization overseeing investment dealers and mutual fund dealers.
Fill in the blank: CIRO monitors dealer members for _______ compliance.
Financial.
List four functions performed by CIRO.
- Financial compliance
- Business conduct compliance
- Registration
- Enforcement
What does the Office of the Superintendent of Financial Institutions (OSFI) regulate?
- Deposit-taking institutions
- Insurance companies
- Foreign bank representative offices
- Federally regulated pension plans
True or False: OSFI regulates the Canadian securities industry.
False.
What is the primary role of the Canadian Investor Protection Fund (CIPF)?
Investor protection.
What does the Canadian Deposit Insurance Corporation (CDIC) insure?
Eligible deposits up to $100,000 per depositor in each member institution.
Name three types of accounts covered by CDIC.
- Savings accounts
- Guaranteed investment certificates
- Foreign currency deposits
Fill in the blank: The Financial Services Regulatory Authority of Ontario (FSRA) was established to improve _______ protections.
Consumer.
What is the purpose of the Financial Professionals Title Protection Rule introduced by FSRA?
To establish minimum educational requirements and professional expectations.
True or False: CIRO regulates mutual funds directly.
False.
What principle guides the priority of interests for financial planners in Ontario according to FSRA?
Putting the client’s interest first.
List two types of regulations that apply to the securities industry beyond provincial rules.
- Criminal Code of Canada
- Legislation regarding money laundering
What happens when two or more regulations conflict in the securities industry?
The strictest standard applies.
What is the role of the Chambre de la sécurité financière (CSF) in Quebec?
Regulates the mutual fund and insurance industry.
Fill in the blank: The CIPF protects eligible customers in the event of the _______ of dealer members.
Insolvency.
What is the maximum coverage provided by the CIPF for accounts combined as a general account?
$1 million.
What is the purpose of investor protection funds in the securities industry?
To protect against loss from the financial failure of firms in the self-regulatory system.
What types of institutions does the CDIC provide deposit insurance for?
Banks, trust companies, and loan companies.
List three sectors regulated by the Financial Services Regulatory Authority of Ontario (FSRA).
- Financial planners and advisors
- Life and health insurance
- Credit unions and caisses populaires