CPH Exam Correct Questions And
Answers
When are suitability requirements not applicable?Correct Answers For brokers who do
not provide investment advice or operate as a separate legal entity
How is a new product approved?Correct Answers After review from the New product
Committee
What are the ethical principles for a code of ethics?Correct Answers Trust, integrity,
justice, fairness, and honesty
What are the 5 Standards of Conduct?Correct Answers Duty of Care, Trustworthiness,
Honesty, and Fairness, Professionalism, Conduct in Accordance with Securities Acts,
Confidentiality
What falls under the Standard of Duty of Care?Correct Answers KYC, Due Diligence,
Unsolicited Orders
What falls under the Standard of Trustworthiness, Honesty, and Fairness?Correct
Answers Priority of Client Interests, Protection of Client Assets, Complete and Accurate
Information, Disclosure
What falls under the Standard of Professionalism?Correct Answers Client Orders,
Trades by Registered Individuals, Approved Securities, Personal Financial Dealings
with Clients, Personal Trading Activity, Continuous Education
What falls under the Standard of Conduct of Conduct in Accordance with Securities
Acts?Correct Answers Inside Information
What falls under the Standard of Confidentiality?Correct Answers Client Information,
Use of Confidential Information
When can SRO's and commissions share information?Correct Answers If it is in an
investigation
What are the fines under the Personal Information Protection and Electronic Documents
Act?Correct Answers $10,000 to $100,000
Where does the Personal Information Protection and Electronic Documents act not
apply due to similar legislation?Correct Answers BC, Alberta, and Quebec
,What is the main mandate of securities regulators?Correct Answers Promote the
Integrity of the Markets and Ensure Investor Protection
What are the 3 principles of securities regulation?Correct Answers Disclosure,
Registration, Enforcement
What is the maximum penalty for offences under the Ontario Securities Act?Correct
Answers Fine of 5 million and a 5 year prison term, additionally provinces can order
repayment of $100,000 to investors
What is the Disciplined Persons List?Correct Answers A list of those who have been
sanctioned for market misconduct
What is the integrated Market Enforcement Team?Correct Answers Cooperative effort
between the RCMP and the Federal government
What is the Joint Serious Offences Team?Correct Answers Joint effort between the
OSC and the RCMP
What is the CSA?Correct Answers Overseer of securities regulators that meets
quarterly in person and monthly by conference call
What is SEDAR?Correct Answers Electronic filing system for regulatory filings
What is SEDI?Correct Answers Insider reports
When should trades be reported to SEDI?Correct Answers Within 5 days
When should event reports be reported to SEDICorrect Answers Within 1 business day
What is the NRD?Correct Answers Database for registration that applies across
Canada
What is an AFR?Correct Answers Authorized Firm Representative, must submit
information to the NRD
When must a change regarding firms or individuals be submitted to the NRD?Correct
Answers Within 10 days of the change
When must a change regarding citizenship or employment be submitted to the NRD?
Correct Answers Within 30 days
What is the policy for short-term disability leaves with the NRD?Correct Answers Any
supervisory position leaves must be reported, but for regular employees nothing less
than a 3 month leave must be reported
, When must termination of employment be reported to the NRD?Correct Answers Within
10 days
When must material changes to registrants be reported to the NRD?Correct Answers
Within 10 days
When must material changes to registrants be reported to the employer?Correct
Answers Within 2 business days
What is the CTO National Database?Correct Answers Keeps a list of companies who
have failed to meet disclosure requirements and prohibits trading in those securities
How can you check the registration of any firm or individual?Correct Answers The NRS
(national registration search)
What is a National Instrument?Correct Answers Has been adopted by all CSA
jurisdictions
What is a multilateral instrument?Correct Answers Has not been adopted by one or
more CSA jurisdictions
What is the AMF's Financial Services Compensation Fund?Correct Answers
Reimburses victims of fraud in Quebec up to $100,000
What 2 organizations merged to create IIROC?Correct Answers Investment Dealers
Association and Market Regulation Services
What is the Investment Industry Association of Canada?Correct Answers An
organization that attempts to grow the industry. Not a regulatory body
What are the 4 goals of the Investment Industry Association of Canada (IIAC)?Correct
Answers Advocacy, Industry Profile, Member Support, and Market Advancement
How are Mutual Funds regulated in Quebec?Correct Answers AMF regulates the
mutual fund industry while CHAMBRE sets CE requirements and a code of ethics
What is the MFDA IPC?Correct Answers Covers $1 million per account after insolvency
of a MFDA member
How does registration work for a mutual fund that operates in both Quebec and another
jurisdiction?Correct Answers There is an agreement so that regulatory duplication will
not occur
What is the CDIC?Correct Answers Insures accounts and GIC's with a term of 5 years
or less up to $100,000 per institution
Answers
When are suitability requirements not applicable?Correct Answers For brokers who do
not provide investment advice or operate as a separate legal entity
How is a new product approved?Correct Answers After review from the New product
Committee
What are the ethical principles for a code of ethics?Correct Answers Trust, integrity,
justice, fairness, and honesty
What are the 5 Standards of Conduct?Correct Answers Duty of Care, Trustworthiness,
Honesty, and Fairness, Professionalism, Conduct in Accordance with Securities Acts,
Confidentiality
What falls under the Standard of Duty of Care?Correct Answers KYC, Due Diligence,
Unsolicited Orders
What falls under the Standard of Trustworthiness, Honesty, and Fairness?Correct
Answers Priority of Client Interests, Protection of Client Assets, Complete and Accurate
Information, Disclosure
What falls under the Standard of Professionalism?Correct Answers Client Orders,
Trades by Registered Individuals, Approved Securities, Personal Financial Dealings
with Clients, Personal Trading Activity, Continuous Education
What falls under the Standard of Conduct of Conduct in Accordance with Securities
Acts?Correct Answers Inside Information
What falls under the Standard of Confidentiality?Correct Answers Client Information,
Use of Confidential Information
When can SRO's and commissions share information?Correct Answers If it is in an
investigation
What are the fines under the Personal Information Protection and Electronic Documents
Act?Correct Answers $10,000 to $100,000
Where does the Personal Information Protection and Electronic Documents act not
apply due to similar legislation?Correct Answers BC, Alberta, and Quebec
,What is the main mandate of securities regulators?Correct Answers Promote the
Integrity of the Markets and Ensure Investor Protection
What are the 3 principles of securities regulation?Correct Answers Disclosure,
Registration, Enforcement
What is the maximum penalty for offences under the Ontario Securities Act?Correct
Answers Fine of 5 million and a 5 year prison term, additionally provinces can order
repayment of $100,000 to investors
What is the Disciplined Persons List?Correct Answers A list of those who have been
sanctioned for market misconduct
What is the integrated Market Enforcement Team?Correct Answers Cooperative effort
between the RCMP and the Federal government
What is the Joint Serious Offences Team?Correct Answers Joint effort between the
OSC and the RCMP
What is the CSA?Correct Answers Overseer of securities regulators that meets
quarterly in person and monthly by conference call
What is SEDAR?Correct Answers Electronic filing system for regulatory filings
What is SEDI?Correct Answers Insider reports
When should trades be reported to SEDI?Correct Answers Within 5 days
When should event reports be reported to SEDICorrect Answers Within 1 business day
What is the NRD?Correct Answers Database for registration that applies across
Canada
What is an AFR?Correct Answers Authorized Firm Representative, must submit
information to the NRD
When must a change regarding firms or individuals be submitted to the NRD?Correct
Answers Within 10 days of the change
When must a change regarding citizenship or employment be submitted to the NRD?
Correct Answers Within 30 days
What is the policy for short-term disability leaves with the NRD?Correct Answers Any
supervisory position leaves must be reported, but for regular employees nothing less
than a 3 month leave must be reported
, When must termination of employment be reported to the NRD?Correct Answers Within
10 days
When must material changes to registrants be reported to the NRD?Correct Answers
Within 10 days
When must material changes to registrants be reported to the employer?Correct
Answers Within 2 business days
What is the CTO National Database?Correct Answers Keeps a list of companies who
have failed to meet disclosure requirements and prohibits trading in those securities
How can you check the registration of any firm or individual?Correct Answers The NRS
(national registration search)
What is a National Instrument?Correct Answers Has been adopted by all CSA
jurisdictions
What is a multilateral instrument?Correct Answers Has not been adopted by one or
more CSA jurisdictions
What is the AMF's Financial Services Compensation Fund?Correct Answers
Reimburses victims of fraud in Quebec up to $100,000
What 2 organizations merged to create IIROC?Correct Answers Investment Dealers
Association and Market Regulation Services
What is the Investment Industry Association of Canada?Correct Answers An
organization that attempts to grow the industry. Not a regulatory body
What are the 4 goals of the Investment Industry Association of Canada (IIAC)?Correct
Answers Advocacy, Industry Profile, Member Support, and Market Advancement
How are Mutual Funds regulated in Quebec?Correct Answers AMF regulates the
mutual fund industry while CHAMBRE sets CE requirements and a code of ethics
What is the MFDA IPC?Correct Answers Covers $1 million per account after insolvency
of a MFDA member
How does registration work for a mutual fund that operates in both Quebec and another
jurisdiction?Correct Answers There is an agreement so that regulatory duplication will
not occur
What is the CDIC?Correct Answers Insures accounts and GIC's with a term of 5 years
or less up to $100,000 per institution
