Chapter 2 Financial Services Authority Flashcards
The British Columbia Financial Services Authority does NOT have to:
(1) cancel a licensee’s licence.
(2) use funds from administrative penalties for non-educational purposes.
(3) order unlicensed individuals to pay a monetary penalty for providing real estate services without a
licence.
(4) apply to court to appoint a receiver over the property of a licensee.
2
Which one of the following is NOT a course of action that the British Columbia Financial Services
Authority can take following a disciplinary hearing?
(1) Reprimand the licensee
(2) Order the cancellation of the licensee’s licence
(3) Suspend the licensee from participation in the Multiple Listing Service®
(4) Order the licensee to enroll in and complete a course of studies or training
3
A developer of land not located in a municipality filed the necessary disclosure statement with the British
Columbia Financial Services Authority with respect to his 20 lot subdivision. After foreclosure
proceedings, the developer’s bank became the owner of the subdivision. The bank wishes to sell the lots
on an individual basis. Which one of the following statements is TRUE?
(1) Because the bank is selling more than five lots, it should file a disclosure statement with the British
Columbia Financial Services Authority.
(2) A further disclosure statement is not necessary.
(3) The disclosure statement filed by the developer will satisfactorily protect people who purchase lots
from the bank.
(4) Because there has been a foreclosure, the bank is obligated to file a prospectus rather than a
disclosure statement.
1
Which of the following is the British Columbia Financial Services Authority NOT explicitly empowered to
investigate under the Real Estate Services Act?
(1) Wrongful taking or deceptive dealing
(2) Breaches of the REALTOR Code
(3) Breaches of the Act
(4) Incompetence as a licensee
2
The British Columbia Financial Services Authority is NOT responsible for which one of the following?
(1) Holding hearings to investigate the conduct of licensees
(2) Determining the information required on a licence application
(3) Enforcing the provisions of the applicable professional code of ethics
(4) Providing for an educational program for licensees
3
The REALTOR® Code of Ethics is enforced by the:
(1) Canadian Real Estate Association.
(2) local real estate boards.
(3) British Columbia Real Estate Association.
(4) British Columbia Financial Services Authority.
2
The Superintendent of Real Estate is appointed by:
(1) real estate licensees.
(2) the Lieutenant Governor in Council.
(3) the real estate boards.
(4) the BC Financial Services Authority board of directors.
4
Kenneth, a licensed managing broker, has been sued by a buyer who relied on the advice of a
representative employed by Kenneth. Evidence in the case indicated that Kenneth’s representative was
grossly incompetent and that Kenneth had failed to carry out his supervisory responsibilities as the
managing broker. The British Columbia Financial Services Authority (BCFSA) is instituting a formal
disciplinary hearing to investigate the situation and both Kenneth and the representative have received
the notice of hearing. Kenneth does not think that BCFSA can discipline him and is angry that he is being
held responsible for his representative’s conduct. Which of the following statements is FALSE?
(1) BCFSA has the authority to subject Kenneth to a disciplinary hearing for the action of his
representative, under the powers granted to BCFSA by the Real Estate Services Act.
(2) The representative cannot be disciplined jointly with Kenneth; only Kenneth will bear responsibility
for a breach of the Real Estate Services Act by his employee.
(3) One of the disciplinary options available to BCFSA in this case is to suspend Kenneth’s licence.
(4) If BCFSA imposes a discipline order on Kenneth, the Real Estate Services Act requires that BCFSA
publish this order on its website and provide copies to any person upon request.
2
Which of the following is NOT one of the powers and duties of the British Columbia Financial Services
Authority (BCFSA)?
(1) To conduct investigations relating to licensees
(2) To issue and renew licences
(3) To ensure compliance with the requirements of the Real Estate Services Act
(4) To enforce the Code of Ethics and Standards of Business Practice
4
Which of the following is NOT a power or duty of the British Columbia Financial Services Authority?
(1) Issuance of real estate services licences
(2) Conduct formal disciplinary processes
(3) Require the licensees to pay part or all of the expenses incurred in relation to an investigation to
which an order relates
(4) Undertaking and carrying out real estate law reform
4
