IFC Chapter 1 - The Role of a Mutual Funds Sales Rep

What are the three responsibilities of a mutual fund dealer?
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Terms in this set (22)
What are the three responsibilities of a mutual fund dealer?
legal, ethical and professional responsibility
what is the difference between ethics and compliance?
Compliance is following the rules. Ethics is follows the morality behind the law
Fund facts include which components?
facts about the fund, performance history, investments and costs of investing in the fund
What is the guiding principle of the CFR (client focused reforms) initiative?
To put the client before the dealer
If a client says "that's it, take my order or I'm leaving" but you have not yet gather the required information from the client, what law are you breaking?
Securities law
What are the key components of assessing your client's suitability?
Client's unique situation and investment objectives

KYC: financial status (income and net worth), family and other commitments

understanding of the investment product being recommended
What are the 6 things you need to know about your client?
personal circumstances

financial circumstances

investment needs and objectives

investment knowledge

risk profile

investment time horizon
Suitability comes down to the investment's __________________________ meeting the client's.
characteristics
With less knowledgeable clients, what role do you play as a mutual funds sales representative?
educator
What is one of the roles of a financial planner?
Establishing household budgets
What does your mutual funds registration restrict you to only talking about?mutual fund productsFor an investment horizon of 2 to 3 years, what type of funds would you immediately cut out? What type of funds would you count in?Equity funds. Bond funds and Money Market fundsAre highly risk averse clients suitable for mutual funds?NoWhat is one tool you might use to gauge whether a client knows about investing or not?Their income and net worth. If they have high income and net worth, but no other investments, this is a good indicator that their investment knowledge is poor.What is not as pronounced in bond funds or money market funds?volatilityWhat are the two documents that describe the characteristics of the mutual fund?fund facts and prospectusWhat types of funds generate lower fees?Money market and bond fundsHow might a mutual fund dealer start their day?By watching the news in the morning and preparing for each of their appointments for that daySince when has the mutual fund industry in Canada taken off?1980s and 1990sWhat is the approximate value of assets under management in Canada by the end of March 2020?1.45 trillionWhat is the legal responsibility of a mutual fund dealerThe investment you recommend needs to be suitable for the clientprofessional responsibility of a mutual fund dealer is what?provide the best client service as possible