CIFC CIFC Client Account Management and KYC

Question 1

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

Accepted Answer

Know Your Client

Answer

Keep Your Capital

Answer

Key Yield Calculation

Answer

Know Your Competitor

Question 2

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

Accepted Answer

Client's investment knowledge and risk tolerance

Answer

Client's social media activity

Answer

Client's employer's financial statements

Answer

Client's credit card spending history

Question 3

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

Accepted Answer

Annually or when material changes occur

Answer

Every 6 months

Answer

Every 5 years

Answer

Only at account opening

Question 4

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

Accepted Answer

To collect KYC information and establish the client relationship

Answer

To authorize the advisor's compensation

Answer

To register the fund with regulators

Answer

To calculate the management expense ratio

Question 5

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

Accepted Answer

Short-term (under 3 years)

Answer

Long-term (10+ years)

Answer

Medium-term (5–10 years)

Answer

Speculative

Question 6

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

Accepted Answer

Decline to open the account or make a recommendation

Answer

Proceed with the account using estimated data

Answer

Accept a partial KYC and note it on file

Answer

Refer the client to a competitor