Portfolio Management Techniques (CSI) || 100% Valid answers.
Self-Regulatory Organizations correct answers IIROC. Receive responsibilities from OSC
Ontario Securities Commission (OSC) correct answers Registration and regulation of portfolio
managers.
Responsible Person correct answers Holder of discretionary authority over a managed account.
Involved in investment decisions, or has prior access to those decisions.
When is additional approval required even with discretionary authority correct answers 1) when
trading dealer member securities or derivatives
2) securities for which a responsible person is an officer or director
3) securities traded from the account or associate of a responsible person
4) new securities that the dealer underwrote
5) a loan to a responsible person
Late Trading correct answers Purchasing mutual fund units after 4:00PM when the NAVPU is
known, this is unfair to other buyers who purchase before close with unknown NAVPU
4 Catagories of Transactions Reported Regularly correct answers 1) Deposits of $10,000 or more
2) Deposits totalling $10,000 or more within 24-hours
3) EFT of $10,000 or more/ totalling $10,000 or
more within 24hrs
4) Terrorist property
Ultimate Designated Person (UDP) correct answers UDP = CEO, sole proprietor or an officer of
the firm. Promotes compliance with securities legislation and supervising the firm's compliance
activities.
Exempt Market Dealer correct answers Only deal in securities that are exempt from the
prospectus requirement - private placement
IIROC will permit subadvisors to manage discretionary accounts provided 3 things, what are
they? correct answers 1) written sub advisor agreement is in place
2)The dealer or individual is registered
3) no conflict of interest
Values correct answers - Beliefs
- provide guidance for one's behaviour and goals
- Long lasting
Means Values vs End Values correct answers Means values are actions necessary today for
future goals
Ends values influence how we act today to achieve our future goals
, Three Elements for trust based relationships correct answers 1) advisor possesses knowledge that
client does not possess
2) well regulated industry
3) the advisor places interest of the client before their own
Funds fiduciary responsibility correct answers - act best interest of fund participants
- carry out duties prudently
- follow trust indenture
- diversify
- reasonable fees
Sources And Users Of Capital correct answers Sources: Depositors, lenders, investors, and
policy holders
Users: governments, corporations
Purpose of derivatives for financial intermediaries correct answers 1) manage risk
2) creation and management of specialized products
OFSI (Federal) correct answers NON SECURITIES regulator that governs banks, insurance
companies - financial institutions and federally registered pension plans
Front Office (4 main functions) correct answers 1) Portfolio management
2) trade execution
3) sales and marketing
4) client service
Middle Office correct answers Compliance,
legal,
accounting
audit
Back Office correct answers Trade settlement
Chief Compliance Officer (CCO) correct answers Designs compliance system that satisfies
board of trustees
Fund Manager correct answers An entity not a person:
- prepares and files the prospectus
- ensures service providers exercise due diligence
- negotiate service contracts
- ensures providers activities comply with regulations
Trustee correct answers A mutual fund's assets are normally held in trust. Trustee holds legal title
to fund assets/property on behalf of unit holders
Self-Regulatory Organizations correct answers IIROC. Receive responsibilities from OSC
Ontario Securities Commission (OSC) correct answers Registration and regulation of portfolio
managers.
Responsible Person correct answers Holder of discretionary authority over a managed account.
Involved in investment decisions, or has prior access to those decisions.
When is additional approval required even with discretionary authority correct answers 1) when
trading dealer member securities or derivatives
2) securities for which a responsible person is an officer or director
3) securities traded from the account or associate of a responsible person
4) new securities that the dealer underwrote
5) a loan to a responsible person
Late Trading correct answers Purchasing mutual fund units after 4:00PM when the NAVPU is
known, this is unfair to other buyers who purchase before close with unknown NAVPU
4 Catagories of Transactions Reported Regularly correct answers 1) Deposits of $10,000 or more
2) Deposits totalling $10,000 or more within 24-hours
3) EFT of $10,000 or more/ totalling $10,000 or
more within 24hrs
4) Terrorist property
Ultimate Designated Person (UDP) correct answers UDP = CEO, sole proprietor or an officer of
the firm. Promotes compliance with securities legislation and supervising the firm's compliance
activities.
Exempt Market Dealer correct answers Only deal in securities that are exempt from the
prospectus requirement - private placement
IIROC will permit subadvisors to manage discretionary accounts provided 3 things, what are
they? correct answers 1) written sub advisor agreement is in place
2)The dealer or individual is registered
3) no conflict of interest
Values correct answers - Beliefs
- provide guidance for one's behaviour and goals
- Long lasting
Means Values vs End Values correct answers Means values are actions necessary today for
future goals
Ends values influence how we act today to achieve our future goals
, Three Elements for trust based relationships correct answers 1) advisor possesses knowledge that
client does not possess
2) well regulated industry
3) the advisor places interest of the client before their own
Funds fiduciary responsibility correct answers - act best interest of fund participants
- carry out duties prudently
- follow trust indenture
- diversify
- reasonable fees
Sources And Users Of Capital correct answers Sources: Depositors, lenders, investors, and
policy holders
Users: governments, corporations
Purpose of derivatives for financial intermediaries correct answers 1) manage risk
2) creation and management of specialized products
OFSI (Federal) correct answers NON SECURITIES regulator that governs banks, insurance
companies - financial institutions and federally registered pension plans
Front Office (4 main functions) correct answers 1) Portfolio management
2) trade execution
3) sales and marketing
4) client service
Middle Office correct answers Compliance,
legal,
accounting
audit
Back Office correct answers Trade settlement
Chief Compliance Officer (CCO) correct answers Designs compliance system that satisfies
board of trustees
Fund Manager correct answers An entity not a person:
- prepares and files the prospectus
- ensures service providers exercise due diligence
- negotiate service contracts
- ensures providers activities comply with regulations
Trustee correct answers A mutual fund's assets are normally held in trust. Trustee holds legal title
to fund assets/property on behalf of unit holders
