CHAPTER 3: THE CANADIAN REGULATORY ENVIRONMENT

1.

Which of the following statements is false regarding the OSFI? a) b) c) d) The OSFI supervises federally regulated pension plans. It provides actuarial advice to the government of Canada It educates the public about the investment market and its products It regulates federally incorporated financial institutions

2.

Which of the following account values are fully reinsured covered by CDIC? a) b) c) d) $10,000 on deposit in an American branch of a Canadian chartered bank. $100,000 on deposit in a local Canadian branch of a Canadian chartered bank. $100,000 in US dollars on deposit in a local Canadian branch of a Canadian chartered bank. A six year term deposit in a local Canadian branch of a Canadian chartered bank.

3.

The stock exchanges in Canada are governed by: a) b) c) d) OSFI Each provinces securities commission The governing body of the exchange The IDA

4.

Which of the following is true regarding the OBSI? a) b) c) d) Its primary function is consumer advocacy It regulates banking sales practices It was formed as a result of merging the dispute mechanism of the IDA, MFDA, and IFIC so its dispute recommendations are binding It lobbies the government for change on behalf of the industry

5.

Which of the following is not true regarding CIPF? I. II. III. IV. The maximum coverage for each account is $60,000 It insures the investing public protection against loss due to insolvency of a member firm RRSPs are treated as a separate account Cash and securities are treated separately in determining the net equity in the customers account I and IV III and IV II and III IV only

a) b) c)
d)

CSC Volume 1 Exam Prep

6.

Which is not true regarding CIPF? a) b) c) d) It is funded by government revenues Customers can have more than one type of account covered Customer claims must be filed within 180 days from the date of bankruptcy of a member firm It is a separate coverage from CDIC

7.

Confirming a trade when one has not been executed is known as: a) b) c) d) Manipulation High sailing Front running Bucketing

8.

Entering or attempting to enter into any scheme or arrangement to sell and repurchase a security in an effort to influence the market price is known as: a) b) c) d) Manipulation High sailing Front running Bucketing

9.

Deliberately causing the last sale of the day in a security to be higher than warranted by the prevailing market conditions is known as: a) b) c) d) Manipulation High sailing Front running Bucketing

10.

Taking the opposite side of the market to clients is known as: a) b) c) d) Manipulation High sailing Front running Bucketing

11.

Which of the following are considered prohibited sales practices? I. II. III. IV. a) b) c) d) Buying and reselling a security to make its market price desirable Creating fictitious orders to show active public trading of a security Telephoning private homes for the purpose of solicitation Rebating commissions I and II I, II, III and IV I, III, and IV IV only

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