IFSE UPDATED 2026 EXAM SCRIPT QUESTIONS AND
SOLUTIONS SCORED A+
✔✔How could mutual fund dealers (MFDA members) become permitted to transact
business in the exempt markets? - ✔✔Become registered as an exempt market dealer
✔✔What is IIROC's mission? - ✔✔- Protect investors
- Foster market integrity
- Enhance the efficiency and competitiveness of the Canadian capital markets
✔✔What does IIROC's mandate include? - ✔✔- Registration
- Financial Compliance
- Business Conduct Compliance
- Enforcement
- Regulatory Policy
✔✔What is the MFDA's mission? - ✔✔- Enhance investor protection
- Strengthen public confidence in the Canadian mutual fund industry
✔✔What does the MFDA's mandate include? - ✔✔- Financial Compliance
- Business Conduct Compliance
- Enforcement
- Regulatory Policy
✔✔Which SRO undertakes:
- Screening applicants for registration with the securities
commission
- Ensuring representatives entering the industry are of good
character and have the necessary proficiencies - ✔✔Investment Industry Regulatory
Organization of Canada (IIROC)
✔✔Do securities commissions and SROs have the authority to discipline participants
who engage in improper conduct? - ✔✔Yes
✔✔Are securities commissions and SROs empowered to order or obtain restitution for
investors who have lost money? - ✔✔No
✔✔Investors may seek restitution for investment losses through other means and
bodies, including which? - ✔✔Ombudsman for Banking Services and Investments
(OBSI)
✔✔What does the Financial Services Commission of Ontario do? - ✔✔Regulates
insurance distribution, provincial trust and loan companies, and provincial pension funds
,✔✔What does the Autorité des marchés financiers (AMF) do? - ✔✔Regulates
securities, insurance distribution, and provincial trust and loan companies
✔✔What does the Retraite Québec do? - ✔✔Regulates provincial pension funds
✔✔Which province has the most integrated financial regulator? - ✔✔Saskatchewan
✔✔What does the Financial and Consumer Affairs Authority of Saskatchewan do? -
✔✔Regulates all aspects of financial services in the province including securities,
insurance distribution, provincial trust and loan companies, and provincial pension funds
✔✔What is the Canadian Securities Administrators? - ✔✔An umbrella body whose
mandate is to improve, coordinate, and harmonize securities regulation across Canada
✔✔Client Relationship Model 2 encompasses what? - ✔✔Account costs and
performance reporting
✔✔Client Relationship Model 1 encompasses what? - ✔✔- Relationship disclosure
information (RDI)
- Conflicts of interest management/disclosure
- Enhanced suitability assessment
✔✔In order to conduct business in investment products, you must first become
registered as a what? - ✔✔Dealing Representative
✔✔May you open client accounts or offer investment products to clients unless your
registration has first been approved by the securities regulators? - ✔✔No
✔✔How many securities commissions/regulators are there? - ✔✔13 (One in each of the
provinces and territories in Canada)
✔✔How many firm registration categories are there? - ✔✔6 firm categories:
- Investment Dealer
- Mutual Fund Dealer
- Exempt Market Dealer
- Scholarship Plan Dealer
- Portfolio Manager
- Investment Manager
✔✔How many individual registration categories are there? - ✔✔9 individual categories:
- Dealing Representatives
- Other categories
, ✔✔What will the registration process determine? - ✔✔- what specific investment
products you may deal in
- what specific activities and business dealings you may carry out
✔✔Individuals who act on behalf of a registered dealer must be registered as what? -
✔✔Dealing Representatives
✔✔Dealing Representatives of exempt market dealers are restricted from offering
securities of publicly listed
companies, with the exception of what? - ✔✔Prospectus mutual funds
✔✔In order to qualify for registration as a Dealing Representative, you will need to
satisfy the regulatory
requirements governing what three factors? - ✔✔- Proficiency
- Integrity
- Solvency
✔✔What kind of proficiency requirements are there for registration? - ✔✔- Educational,
professional, and experience prerequisites
(Found in Part 3 of National Instrument 31-103)
✔✔What kind of integrity requirements are there for registration? - ✔✔- Standard of
conduct
- Honesty and good faith when dealing with clients
- Compliance with securities laws, regulations and other legislation
✔✔What kind of integrity requirements are there for registration? - ✔✔- Financial
condition
- Insurance
✔✔What form is completed for an application for registration? - ✔✔Form 33-109F4
(Registration of Individuals and Review of Permitted Individuals)
✔✔Changes must be filed with the securities regulators within 30 days of the date of
change of what? - ✔✔- Change in business history and structure
- Details regarding any change in or termination of the directors or officers of the dealer,
or the
termination or cessation of authority of a registered or permitted individual of the dealer
✔✔What is the fee for failing to notify a regulator of a change in details in Ontario? -
✔✔$100 per business day (subject to a maximum of $5,000 for all documents within
one
financial year)
SOLUTIONS SCORED A+
✔✔How could mutual fund dealers (MFDA members) become permitted to transact
business in the exempt markets? - ✔✔Become registered as an exempt market dealer
✔✔What is IIROC's mission? - ✔✔- Protect investors
- Foster market integrity
- Enhance the efficiency and competitiveness of the Canadian capital markets
✔✔What does IIROC's mandate include? - ✔✔- Registration
- Financial Compliance
- Business Conduct Compliance
- Enforcement
- Regulatory Policy
✔✔What is the MFDA's mission? - ✔✔- Enhance investor protection
- Strengthen public confidence in the Canadian mutual fund industry
✔✔What does the MFDA's mandate include? - ✔✔- Financial Compliance
- Business Conduct Compliance
- Enforcement
- Regulatory Policy
✔✔Which SRO undertakes:
- Screening applicants for registration with the securities
commission
- Ensuring representatives entering the industry are of good
character and have the necessary proficiencies - ✔✔Investment Industry Regulatory
Organization of Canada (IIROC)
✔✔Do securities commissions and SROs have the authority to discipline participants
who engage in improper conduct? - ✔✔Yes
✔✔Are securities commissions and SROs empowered to order or obtain restitution for
investors who have lost money? - ✔✔No
✔✔Investors may seek restitution for investment losses through other means and
bodies, including which? - ✔✔Ombudsman for Banking Services and Investments
(OBSI)
✔✔What does the Financial Services Commission of Ontario do? - ✔✔Regulates
insurance distribution, provincial trust and loan companies, and provincial pension funds
,✔✔What does the Autorité des marchés financiers (AMF) do? - ✔✔Regulates
securities, insurance distribution, and provincial trust and loan companies
✔✔What does the Retraite Québec do? - ✔✔Regulates provincial pension funds
✔✔Which province has the most integrated financial regulator? - ✔✔Saskatchewan
✔✔What does the Financial and Consumer Affairs Authority of Saskatchewan do? -
✔✔Regulates all aspects of financial services in the province including securities,
insurance distribution, provincial trust and loan companies, and provincial pension funds
✔✔What is the Canadian Securities Administrators? - ✔✔An umbrella body whose
mandate is to improve, coordinate, and harmonize securities regulation across Canada
✔✔Client Relationship Model 2 encompasses what? - ✔✔Account costs and
performance reporting
✔✔Client Relationship Model 1 encompasses what? - ✔✔- Relationship disclosure
information (RDI)
- Conflicts of interest management/disclosure
- Enhanced suitability assessment
✔✔In order to conduct business in investment products, you must first become
registered as a what? - ✔✔Dealing Representative
✔✔May you open client accounts or offer investment products to clients unless your
registration has first been approved by the securities regulators? - ✔✔No
✔✔How many securities commissions/regulators are there? - ✔✔13 (One in each of the
provinces and territories in Canada)
✔✔How many firm registration categories are there? - ✔✔6 firm categories:
- Investment Dealer
- Mutual Fund Dealer
- Exempt Market Dealer
- Scholarship Plan Dealer
- Portfolio Manager
- Investment Manager
✔✔How many individual registration categories are there? - ✔✔9 individual categories:
- Dealing Representatives
- Other categories
, ✔✔What will the registration process determine? - ✔✔- what specific investment
products you may deal in
- what specific activities and business dealings you may carry out
✔✔Individuals who act on behalf of a registered dealer must be registered as what? -
✔✔Dealing Representatives
✔✔Dealing Representatives of exempt market dealers are restricted from offering
securities of publicly listed
companies, with the exception of what? - ✔✔Prospectus mutual funds
✔✔In order to qualify for registration as a Dealing Representative, you will need to
satisfy the regulatory
requirements governing what three factors? - ✔✔- Proficiency
- Integrity
- Solvency
✔✔What kind of proficiency requirements are there for registration? - ✔✔- Educational,
professional, and experience prerequisites
(Found in Part 3 of National Instrument 31-103)
✔✔What kind of integrity requirements are there for registration? - ✔✔- Standard of
conduct
- Honesty and good faith when dealing with clients
- Compliance with securities laws, regulations and other legislation
✔✔What kind of integrity requirements are there for registration? - ✔✔- Financial
condition
- Insurance
✔✔What form is completed for an application for registration? - ✔✔Form 33-109F4
(Registration of Individuals and Review of Permitted Individuals)
✔✔Changes must be filed with the securities regulators within 30 days of the date of
change of what? - ✔✔- Change in business history and structure
- Details regarding any change in or termination of the directors or officers of the dealer,
or the
termination or cessation of authority of a registered or permitted individual of the dealer
✔✔What is the fee for failing to notify a regulator of a change in details in Ontario? -
✔✔$100 per business day (subject to a maximum of $5,000 for all documents within
one
financial year)
