64. Dealing Representatives Often referred to as “Advisors” in the securities industry, because they provide investment advice to their clients. 65. Investment Selection Considerations Selecting investments and building portfolios that will help clients achieve their investment objectives is fundamental to the role of a Dealing Representative. Investment selection A) Investment selection starts with a careful analysis of the features and characteristics of the available investment products a…

61. Client-Name Accounts: In the client’s name * New account application: 1 Dealer, 1 Fund Company * Trade instructions with client signature or LTA * Custody of account: Fund Company * No Investor Protection 62. Nominee-Name Accounts: In the dealer’s name * New account application: 1 Form: Dealer * Trade instructions with no signature * Custody of account: Dealer * Investor Protection 63. Client File Documents: New Client Application Form (NCAF) * Relationship Disclosure Information (RDI) *…

59. Registered Retirement Income Fund (RRIF) In the year that an investor turns 71 years of age, their RRSP matures and the investor must choose one of the following conversion options: 1. De-register the RRSP and receive a lump-sum cash payment 2. Purchase an annuity 3. Convert the RRSP into a Registered Retirement Income Fund (RRIF) Registered Retirement Income Fund (RRIF) RRIF is essentially the mirror opposite of an RRSP. RRSP is used to save money for retirement, a RRIF is used to withdra…

55. RRSP Contributions: Tax deductible * Can be carried forward * Can be made until December 31st of the year in which the planholder turns age 71 56. RRSP Formula: 18% of the previous year's earned income, up to the maximum annual RRSP Limit + Unused RRSP contribution from previous years - Pension adjustment (PA) - Past service pension adjustment (PSPA) + Pension adjustment reversal (PAR) 57. RRSP withdrawals: Taxable as follows $0 to $5,000: 10% (Canada except Quebec), 20% (Quebec) $5,001 …

49. Individual Accounts Owned by a singular person, who has authorization for transactions and responsibility for the tax liabilities within the account. 50. Joint Accounts Owned by two or more persons * Income earned in the account is taxable to the joint owners Authorization of transactions by: Either of owners * Combination of owners * All owners Survivorship: Joint Tenancy with Right of Survivorship * Tenancy in Common 51. What is Trust? A legal relationship, whereby one party (the trust…

47. Legislations for new account openings: 1. Securities 2. Taxation 3. Privacy 4. Anti-money laundering and terrorist financing (AMLTF) New account documents * General Client information * Financial Know Your Client (KYC) information * Client Identification (ID) information * Privacy * Relationship Disclosure Information (RDI) * Information Applicable to the Account/Type 48. Account types: A) Registered plans Defined under Income Tax Act * Registered with CRA * Incentives to grow savings fo…

41. Personal Information Protection and Electronic Documents Act (PIPEDA): *** Personal information must be collected for a reasonable purpose and with consent. *** Personal information must be used for the purpose consented, and limit the collection, use, and disclosure. *** Individuals must have a right to correct any inaccuracies. *** Companies must store personal information securely. 42. Personal information * Name * Date of birth * Address * Telephone number * Gender * Physical descripti…

40. Anti-Money Laundering/Terrorist Financing (AMLTF) Requirements for the Financial Sector: 1. Establish an effective compliance regime 2. Appoint an AMLTF Compliance Officer 3. Identify clients 4. Conduct surveillance to detect improper activities including: * Large transaction reviews * Suspicious transaction reviews * Terrorist property reviews 5. File surveillance reports including: * Suspicious Transaction Reports * Large Cash Transaction Reports * Terrorist Property Reports * Monthly Supp…

38. Investor Protection Funds Firms registered in the capital markets must maintain a strong financial position, which is monitored by the securities regulators and SROs, the same for the members of the MFDA and IIROC. If a firm fails, investors of the investor protection funds are covered for any losses (up to maximum coverage levels) as a result of the insolvency: *** Investor Protection Fund (MFDA IPC): For MFDA Members *** Canadian Investor Protection Fund (CIPF): For IIROC Members The d…

35. Securities regulators’ mandate: Policy: Develop rules and regulations Registration: Administer the registration of market participants Compliance: Oversee and monitor registrants for compliance with legislation and regulations Enforcement: Enforce the rules, regulations, and legislation. Discipline market participants who breach the rules, regulations, and legislation 36. Canadian Securities Administrators (CSA) manages: A) CSA Regulations B) Passport System C) Electronic Databases 1) System…