BMO Professional Standards & Ethics 2

Question 1

A BMO relationship manager discovers their close friend is about to make a large investment based on a rumor about a client's upcoming merger. What is the correct action?

Accepted Answer

Report the potential insider trading concern to compliance immediately

Answer

Any potential insider trading situation must be reported to the compliance department immediately, regardless of whether the individual involved is a BMO employee.

Question 2

Under BMO's conflict of interest policy, when must an employee disclose a personal financial interest in a transaction?

Accepted Answer

Whenever the interest could influence or appear to influence their professional judgment

Answer

Employees must disclose personal financial interests whenever those interests could — or could reasonably appear to — influence their professional judgment.

Question 3

A BMO employee receives an expensive gift from a vendor during contract renewal negotiations. What should the employee do?

Accepted Answer

Decline the gift and report the offer to their manager or compliance

Answer

Gifts received during active negotiations create a clear conflict of interest and must be declined and reported, regardless of value.

Question 4

Which of the following best describes BMO's approach to anti-money laundering (AML) obligations for front-line staff?

Accepted Answer

Front-line staff must report suspicious transactions and complete required AML training

Answer

Front-line employees share responsibility for AML compliance, including identifying and reporting suspicious activity and completing mandatory training.

Question 5

An employee overhears a colleague sharing confidential client account details at a coffee shop. The correct response is to:

Accepted Answer

Report the breach of client confidentiality to a manager or compliance

Answer

Breaches of client confidentiality must be reported to management or compliance, as all employees have a duty to protect client information.

(BMO) Bank of Montreal Assessment Practice Test

(BMO) Bank of Montreal Assessment Practice Test

BMO Professional Standards & Ethics 2