Last Updated: Sep 09, 2026
No. of Questions: 112 Questions & Answers with Testing Engine
Download Limit: Unlimited
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Topic 2: Market Integrity, Trade Execution and Settlement | ~12% | - Order Types, Execution and Settlement Processes - UMIR and Market Integrity Rules |
| Topic 3: Derivatives Fundamentals | ~5–8% | - Options, Futures and Forwards Basics - Risk and Suitability for Derivatives |
| Topic 4: Overview of Regulatory Framework | ~10% | - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) - Market Infrastructure and Protection Funds |
| Topic 5: Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics - Equities, Fixed-Income and Managed Products |
| Topic 6: Market and Company Analysis | ~8% | - Fundamental and Technical Analysis - Investment Performance Benchmarks |
| Topic 7: Client Complaint Handling and Reporting | ~5% | - Complaint Management Framework - Escalation, Recordkeeping and Reporting |
| Topic 8: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Topic 9: Prospective Client Relationships | ~10% | - Relationship Discovery and Qualification - Know Your Prospect (KYP) and Disclosures |
Question 1
An investor is considering mutual funds but has concerns about potential drawbacks. What is one significant disadvantage of investing in mutual funds?
A. Liquidity allowing easy buying and selling
B. Fees and expenses reducing overall returns
C. Professional management of the fund
D. High diversification in the portfolio
Question 2
An investor is researching equity products and wants to ensure they are using reliable sources of information. They focus on platforms that provide financial statements, regulatory filings, and official disclosures. What is the most appropriate source for accessing such information in Canada?
A. Websites that display market data and investor commentary from multiple sources
B. Financial news services that summarize company earnings and analyst forecasts
C. Equity research platforms that compile analyst ratings and performance metrics
D. System for Electronic Document Analysis and Retrieval (SEDAR+) platform for access to financial statements and regulated filings
Question 3
An investment advisor is discussing the risks of investing in crypto assets with a client. Which of the following is a typical feature of crypto assets?
A. They are intangible so have no opportunity for long term gain
B. Their value can be highly volatile, subject to market speculation
C. They are prone to sudden increases in supply diluting the price
D. The heavy regulatory burden leads to high associated costs
Question 4
A Portfolio Manager with discretionary accounts controls the proxy voting on behalf of clients. The firm does not typically participate in corporate governance votes but the manager's sister-in-law has been nominated for the board, and has asked the manager to vote in favour of her nomination. The manager believes she is well qualified. How should the manager proceed?
A. The manager should abstain from voting, as the personal relationship with the nominee creates a potential conflict of interest
B. Vote as requested by the sister-in-law, as the firm does not typically participate in governance votes, so this situation is unlikely to matter
C. The manager should vote in favour of the nomination, but only if they disclose the personal relationship to clients before casting the vote
D. The manager should vote against the nomination, as it could create a potential conflict of interest even though she is qualified
Question 5
Where would a retail client of an Investment Dealer find a description of its complaint handling procedures?
A. The know-your-client (KYC) Information Form
B. The Fee Disclosure Document
C. The Account Opening Agreement
D. The Relationship Disclosure
Solutions:
| Question 1 Answer: B | Question 2 Answer: D | Question 3 Answer: B | Question 4 Answer: A | Question 5 Answer: D |
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