Chapter 3 The Canadian regulatory environment

Question 1

What is the difference between a Investment advisor and a Investment representative?

Answer 1

Investment advisors can give portfolio advice and trade securities. 90 days training.

Investment representative can trade but cannot give advice to clients. 30 days training.

Question 2

What is the National registration database?

Answer 2

It is an electronic database to register as an investment advisor.

Question 3

What are the requirements of arbitration?

Answer 3

The conflict has tried to resolve with the investment dealer prior and it is less than 500,000$

Question 4

Can you explain the CIPF coverage?

Answer 4

It covers cash, margin and TFSA accounts up 1 million.
registered retirement savings plans combined 1 million.
registered education savings plans combined 1 million.

Question 5

How much does the MFDA IPC cover?

Answer 5

1 million in general account and

1 million in RRSP account

Question 6

Who does the OSFI regulate?

Answer 6

Financial institutions, banks, pension plans.