CPH

Question 1

End Value

Answer 1

Help define our personal goals; a goal towards which we strive.

Question 2

Means Value

Answer 2

The steps we take towards reaching the end value.

Question 3

End-based ethical thinking

Answer 3

What brings the greatest good for the most people?

Question 4

Rule-based ethical thinking

Answer 4

Which solutions result in a suitable rule for others to follow in similar situations?

Question 5

Social-contract based ethical thinking

Answer 5

Which solution results in the most harmonious relationships among the various groups?

Question 6

Personalistic-based ethical thinking

Answer 6

Which solution aligns most with my authentic self?

Question 7

Integrated Market Enforcement Teams - who runs and what do they do?

Answer 7

RCMP and Federal Government. Strengthen law enforcement to detect, investigate and deter capital market fraud.

Question 8

Joint Serious Offences Team

Answer 8

RCMP, Ontario Sec Commission and Ontario Police - investigate and prosecute violations of Ontario Securities Act.

Question 9

CTO National Database

Answer 9

Cease Trade Order to prohibit trading of a security of a certain company.

Question 10

International Organization of Securities Commissions

Answer 10

Regulates more than 95% of the world’s capital markets. Consistent standards of regulation, enforcement, investor protection, etc.

Question 11

IIROC

Answer 11

Investment dealers and trading activity in debt and equity marketplace.

Question 12

General Accounts (for CIPF coverage)

Answer 12

Cash, margin, options, futures, short

Question 13

Separate Accounts (for CIPF coverage)

Answer 13

Registered retirement accounts, testamentary trusts, inter vivos trusts, personal holding corps, partnerships, unincorporated associations

Question 14

Placement

Answer 14

Structuring (breaking large amounts into smaller sums)
Mingling criminal proceeds with legit businesses
Bribe bank personnel to deposit without reporting
Smuggling cash into less strict countries
Purchasing cheques/drafts and depositing at another location

Question 15

Layering

Answer 15

Creating layers of complex financial transactions

Question 16

Integration

Answer 16

Placing laundered proceeds back into economy, ie purchasing real estate

Question 17

What can RRs advise on?

Answer 17

Full range of equities and fixed income products

Question 18

Can RRs advise on options, futures?

Answer 18

Additional proficiency requirements are needed.

Question 19

How long is the RR training period?

Answer 19

90 days

Question 20

How long is new RR supervision?

Answer 20

6 months

Question 21

Who is required to do the 30 month requirement and what is it?

Answer 21

RRs must do it, WME course

Question 22

Who can exercise discretionary trading?

Answer 22

Portfolio Managers

Question 23

What is the CE requirement for IRs?

Answer 23

Compliance portion only

Question 24

How long is the training for IRs?

Answer 24

30 days

Question 25

What are the two roles an IR can do?

Answer 25

Sales assistant or Investment Representative at order execution only firms

Question 26

Can sales assistants take unsolicited orders from clients?

Answer 26

Yes

Question 27

What are RR CE requirements

Answer 27

Every 2 years, 20 hours professional development, 10 hours compliance

Question 28

How long do insiders have to report their trades to securities commissions?

Answer 28

10 days after date of trade

Question 29

What is the punishment for failing to meet AML regulations?

Answer 29

Up yo 5 years in prison and fine of $2mil.

Question 30

What happens to corporate account if you cannot gather info about the beneficial owners after 30 days?

Answer 30

Restrict account to liquidating trades and transfers out.

Question 31

How often must a Designated Supervisor review performance of discretionary accounts?

Answer 31

Monthly

Question 32

What is a managed account and how often must they be reviewed?

Answer 32

Discretionary account on an ongoing basis. Must be reviewed quarterly.

Question 33

What are the termination requirements for a managed accounts?

Answer 33

Clients can terminate anytime. Dealer must give client 30 days notice if terminating.

Question 34

What % of a company does a person need to own to be considered an insider?

Answer 34

10%

Question 35

What % of a company does a person need to own to be considered a control person?

Answer 35

20%

Question 36

Standard trading unit for listed security under 10 cents?

Answer 36

1000 units

Question 37

Standard trading unit for listed security 10 cents to $1?

Answer 37

500 units

Question 38

Standard trading unit for listed security over $1?

Answer 38

100 units

Question 39

Settlement period for GOC Tbills?

Answer 39

T+0 days

Question 40

Settlement period for GOC Bonds?

Answer 40

T+2 days

Question 41

Settlement period for pref and common shares?

Answer 41

T+2 days

Question 42

Minimum quotation spread for security under 50 cents?

Answer 42

$0.005

Question 43

Minimum quotation spread for security over 50 cents?

Answer 43

$0.01

Question 44

Fill or Kill order

Answer 44

As much as possible must be filled immediately, after which the balance of the order is cancelled.

Question 45

Switch order

Answer 45

Sequential sale of one security and subsequent purchase of another.

Question 46

Delayed delivery order

Answer 46

Buyer and seller agree that delivery will take place outside of regular 3 day settlement period.

Question 47

Standard trading unit of GoC T-Bill and guarantees under 1 yr?

Answer 47

$250,000

Question 48

Standard trading unit of GoC guarantees over 1 year?

Answer 48

$100,000

Question 49

Standard trading unit of bonds?

Answer 49

$25,000

Question 50

Standard trading unit of convertible debentures and debentures issued with $5000 pv with warrants/rights?

Answer 50

$5,000

Question 51

Standard trading unit of unlisted stocks under $1?

Answer 51

500 shares

Question 52

Standard trading unit of unlisted stocks $1-$99.99

Answer 52

100 shares

Question 53

Standard trading unit of unlisted stocks over $100

Answer 53

50

Question 54

What are the insider reporting requirements?

Answer 54

10 days after initial trade and within 5 days for subsequent trades

Question 55

Max loan value for long positions $2 and over?

Answer 55

50%

Question 56

Max loan value for long positions $1.75-$1.99?

Answer 56

40%

Question 57

Max loan value for long positions $1.50-$1.74?

Answer 57

20%

Question 58

Credit required for short positions $2 and over?

Answer 58

150%

Question 59

Credit required for short positions $1.50-$1.99?

Answer 59

$3 per share

Question 60

Credit required for short positions $0.25-$1.49?

Answer 60

200% of market value

Question 61

Credit required for short positions under $0.25?

Answer 61

100% of market value plus $0.25 per share