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14 Cards in this Set
- Front
- Back
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Who are the regulations surrounding anti-money laundering (AML) are aimed at protecting? |
Society and the capital markets. |
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How often does IIROC require statements be sent to clients for accounts with no activity other than dividends and interest? |
Quarterly. |
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For what period of time must evidence of supervision be retained, according to IIROC Rule 2500? |
7 years, including 1 year onsite. |
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How long after the closing of an account, must the account identity verification be retained? |
5 years. |
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When a client sells equities, when are the shares removed from his or her account? |
Trade date plus 3. |
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The amount of credit a firm may grant a client against a particular security is regulated by SROs, however what do firms have the ability to do? |
Maintain margin requirements substantially higher than the rates suggested by regulators. |
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IIROC produces a quarterly list of securities eligible for reduced margin. In order for a security to be eligible for reduced margin, what requirements must it meet? |
High liquidity and low price volatility. |
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What type of information does the credit department often provide to the compliance department? |
A list of undermargined and unsecured accounts above a certain dollar-value threshold. |
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Capital rules require each dealer member to maintain a minimum amount of insurance coverage to protect their assets against losses arising from fraud, theft or dishonest acts of employees. The minimum prescribes limits can range from: |
$200,000 to $25 million. |
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Which asset, held by a dealer member, would not be considered allowable under the capital formula? |
Fixed assets. |
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By what time must the dealer of a prospectus-issued security in Canada mail or deliver the prospectus to the purchaser? |
Not later than midnight on the second business day after the trade |
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One of the three provisions outlined in an offering memorandum allows an investor to cancel the agreement to buy a fund, for any reason, within two business days of signing the purchase agreement. What is this provision called? |
The right of withdrawal. |
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What is the purpose of the capital charge under the “Cash Account Rule?” |
To recognize and provide for risk. |
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Under IIROC’s guidance on outsourcing arrangements, which function could be outsourced? |
The administration of margin loans. |
