Chapter I

Question 1

Describe the evolution of the mutual fund industry and the impact mutual funds have had on the financial services marketplace.

Question 2

Explain the value of becoming a licensed mutual fund sales representative and how it prepares you to deal more confidently with clients to protect their interests and provide quality advice.

Question 3

Discuss the importance of providing excellent client service.

Question 4

Identify the legal, ethical and professional responsibilities of a mutual fund sales representative.

Question 5

List and describe the five components of knowing your client.

Question 6

Describe the important role a mutual fund sales representative plays in the client relationship and how this role differs from that of a financial planner.

Question 7

What is a mutual fund?

Question 8

Why does acquiring your license to deal with clients as a mutual fund representative have value?

Question 9

What does excellent client service mean?

Question 10

Can you name three rewards for providing excellent client service?

Question 11

Can you name and describe three important responsibilities when dealing with clients?

Question 12

What does compliance mean?

Question 13

What is ethics?

Question 14

What does ethical conduct require?

Question 15

Can you describe three elements of suitability?

Question 16

What is the Know Your Client (KYC) rule?

Question 17

Can you name five things you want to know about your client?

Question 18

What does Know Your Product refer to?

Question 19

What does net worth refer to?

Question 20

Identify the individual responsible for helping clients to establish household budgets and savings goals.

Answer 20

FP

Question 21

Identify the person responsible for investments in a fund according to the fund’s policies and objectives and based on a particular investing style.

Answer 21

Profesional Money managers

Question 22

Identify one of the criteria that must be evaluated in determining the suitability of an investment for a client.

Answer 22

B. Client’s investment objectives.

Question 23

Define the term that is used to refer to the requirement to follow all legal requirements and dealer policies.

Answer 23

Compliance

Question 24

Anya is evaluating the net worth and determining the investment objectives of a new client. Identify the requirement that Anya is completing.

Answer 24

Ethical responsibilty