Practice Test Geeks(CIFC) Canadian Investment Funds Course Practice Test
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CIFC Client Account Management and KYC Flashcards

6 cards from real CIFC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CIFC Client Account Management and KYC flashcards as text

  1. What does KYC stand for in the context of Canadian investment fund sales?

    Answer: Know Your Client

    KYC stands for Know Your Client, the regulatory obligation to collect sufficient information about a client before making investment recommendations.

  2. Which of the following is a primary component of a KYC profile for a mutual fund investor?

    Answer: Client's investment knowledge and risk tolerance

    A KYC profile must include the client's investment knowledge, risk tolerance, time horizon, and financial situation to ensure suitable recommendations.

  3. Under MFDA rules, how often must a registrant update a client's KYC information at minimum?

    Answer: Annually or when material changes occur

    MFDA rules require registrants to update KYC information annually or whenever a material change occurs in the client's circumstances.

  4. What is the purpose of the New Account Application Form (NAAF) in mutual fund account opening?

    Answer: To collect KYC information and establish the client relationship

    The NAAF collects all required KYC details — personal information, financial situation, investment objectives, and risk tolerance — to establish a compliant client record.

  5. A client states she is 68 years old, retired, and needs income within 2 years. Which time horizon category best applies?

    Answer: Short-term (under 3 years)

    Because the client needs to access funds within 2 years, a short-term time horizon is appropriate and should influence product suitability assessments.

  6. What must a registrant do if a client refuses to provide KYC information?

    Answer: Decline to open the account or make a recommendation

    Without adequate KYC information, the registrant cannot determine suitability and must decline to open the account or provide investment recommendations.

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