IFIC Unit 3 Test with all Correct & 100% Verified Answers
|Latest Version |Already Graded A+
_______________ ______________ ____________ (SIP): used to make good recommendations
and help clients meet their objectives. ✔Correct Answer-Strategic investment planning (SIP):
used to make good recommendations and help clients meet their objectives.
-Each MF dealer has their own (6 steps) SIP process to practice
6 steps of the _________________ (___):
1. Establish the client engagement (letter of engagement)
2. Gather client data and identify objectives
3. Clarify client status, problems and opportunities
4. Identify strategies and present the plan
5. Implement the plan
6. Monitor performance and update ✔Correct Answer-6 steps of the Strategic investment
planning (SIP):
1. Establish the client engagement (letter of engagement)
- Including MF dealer's new application form.
2. Gather client data and identify objectives
- KYC
3. Clarify client status, problems and opportunities
- Analyse KYC info
4. Identify strategies and present the plan
- Include statement certifying that the financial plan is based on my projections and not
guaranteed.
5. Implement the plan
6. Monitor performance and update
- Compare actual performance with projected performance
- Review any changes in the client's personal circumstances
Dealing reps must match a _________ information with the proposed _________ info
✔Correct Answer-Dealing reps must match a KYC information with the proposed KYP info
Three (3) step suitability process:
1.
2.
3. ✔Correct Answer-Three (3) step suitability process:
1. Know your client (KYC)
2. Know your product (KYP)
3. Assess suitability
- Match characteristics of investment with client's needs
, Bart is a new dealing representative. You have been asked to train and orient him. During the
course Bart wants to know the key concept pertaining to Know Your Product (KYP). Which of the
following is the key concept?
- It is essential that you know and understand the attributes and risks of the product.
- It is sufficient to know the representations about the product made by the issuer.
- It is sufficient to know that the product is on the approved list of the dealer firm.
- It is essential to know that no product can be recommended unless it has been initially
recommended by the securities commissions. ✔Correct Answer-Answer: A
It is essential that you know and understand the attributes and risks of the product.
_________________ is to make sure that any investment is suitable to a client's:
- Financial circumstances
- Risk tolerance
- Investment knowledge/needs/objectives ✔Correct Answer-Know your client (KYC) is to make
sure that any investment is suitable to a client's:
- Financial circumstances
- Risk tolerance
- Investment knowledge/needs/objectives
Dealing reps are required (by the ______) to collect the following information about a client
before making an investment:
- Contact information
- Personal information
- ✔Correct Answer-Dealing reps are required (by the MFDA) to collect the following
information about a client before making an investment:
- Contact information
- Personal information
- Dealers must contact their clients at least once a year with a request for info on any material
changes (must be noted on client's KYC info form)
If a client refuses to provide the required information (contact, personals) before making an
investment:
______________, or ___________________________ ✔Correct Answer-If a client refuses to
provide the required information (contact, personals) before making an investment:
Reject their business, or
Contact the compliance department
- Bonus: Refer to the Policies and Procedures Manual of your MF dealer.
Risk tolerance, investment objectives, time horizon, investment knowledge, age, net worth,
annual income and occupation are all required for the ____________ section of the suitability
process ✔Correct Answer-Risk tolerance, investment objectives, time horizon, investment
knowledge, age, net worth, annual income and occupation are all required for the KYC section
of the suitability process
|Latest Version |Already Graded A+
_______________ ______________ ____________ (SIP): used to make good recommendations
and help clients meet their objectives. ✔Correct Answer-Strategic investment planning (SIP):
used to make good recommendations and help clients meet their objectives.
-Each MF dealer has their own (6 steps) SIP process to practice
6 steps of the _________________ (___):
1. Establish the client engagement (letter of engagement)
2. Gather client data and identify objectives
3. Clarify client status, problems and opportunities
4. Identify strategies and present the plan
5. Implement the plan
6. Monitor performance and update ✔Correct Answer-6 steps of the Strategic investment
planning (SIP):
1. Establish the client engagement (letter of engagement)
- Including MF dealer's new application form.
2. Gather client data and identify objectives
- KYC
3. Clarify client status, problems and opportunities
- Analyse KYC info
4. Identify strategies and present the plan
- Include statement certifying that the financial plan is based on my projections and not
guaranteed.
5. Implement the plan
6. Monitor performance and update
- Compare actual performance with projected performance
- Review any changes in the client's personal circumstances
Dealing reps must match a _________ information with the proposed _________ info
✔Correct Answer-Dealing reps must match a KYC information with the proposed KYP info
Three (3) step suitability process:
1.
2.
3. ✔Correct Answer-Three (3) step suitability process:
1. Know your client (KYC)
2. Know your product (KYP)
3. Assess suitability
- Match characteristics of investment with client's needs
, Bart is a new dealing representative. You have been asked to train and orient him. During the
course Bart wants to know the key concept pertaining to Know Your Product (KYP). Which of the
following is the key concept?
- It is essential that you know and understand the attributes and risks of the product.
- It is sufficient to know the representations about the product made by the issuer.
- It is sufficient to know that the product is on the approved list of the dealer firm.
- It is essential to know that no product can be recommended unless it has been initially
recommended by the securities commissions. ✔Correct Answer-Answer: A
It is essential that you know and understand the attributes and risks of the product.
_________________ is to make sure that any investment is suitable to a client's:
- Financial circumstances
- Risk tolerance
- Investment knowledge/needs/objectives ✔Correct Answer-Know your client (KYC) is to make
sure that any investment is suitable to a client's:
- Financial circumstances
- Risk tolerance
- Investment knowledge/needs/objectives
Dealing reps are required (by the ______) to collect the following information about a client
before making an investment:
- Contact information
- Personal information
- ✔Correct Answer-Dealing reps are required (by the MFDA) to collect the following
information about a client before making an investment:
- Contact information
- Personal information
- Dealers must contact their clients at least once a year with a request for info on any material
changes (must be noted on client's KYC info form)
If a client refuses to provide the required information (contact, personals) before making an
investment:
______________, or ___________________________ ✔Correct Answer-If a client refuses to
provide the required information (contact, personals) before making an investment:
Reject their business, or
Contact the compliance department
- Bonus: Refer to the Policies and Procedures Manual of your MF dealer.
Risk tolerance, investment objectives, time horizon, investment knowledge, age, net worth,
annual income and occupation are all required for the ____________ section of the suitability
process ✔Correct Answer-Risk tolerance, investment objectives, time horizon, investment
knowledge, age, net worth, annual income and occupation are all required for the KYC section
of the suitability process
