CSC Canadian Regulatory Environment 2

Question 1

In 2023, which new self-regulatory organization was formed by the merger of IIROC and the MFDA?

Accepted Answer

CIRO (Canadian Investment Regulatory Organization)

Answer

IIROC and the MFDA merged on January 1, 2023 to form CIRO, Canada's single national SRO for investment dealers and mutual fund dealers.

Question 2

What is the general coverage limit per account category provided by the Canadian Investor Protection Fund (CIPF) if a CIRO member firm becomes insolvent?

Accepted Answer

$1 million

Answer

CIPF generally covers up to $1 million per account category (general, registered retirement, and registered education accounts) if a CIRO dealer becomes insolvent.

Question 3

Which statement best distinguishes CDIC coverage from CIPF coverage?

Accepted Answer

CDIC covers eligible deposits at member institutions; CIPF covers securities held at insolvent CIRO member dealers

Answer

CDIC insures eligible deposits (e.g., savings accounts, GICs) at member banks, while CIPF protects client property held at insolvent CIRO dealer members.

Question 4

What is the primary role of the Ombudsman for Banking Services and Investments (OBSI)?

Accepted Answer

To investigate unresolved consumer complaints against banks and investment firms and recommend remedies

Answer

OBSI is an independent dispute-resolution service that reviews complaints consumers cannot resolve with their financial institution or investment firm and can recommend compensation.

Question 5

The Canadian Securities Administrators (CSA) is best described as:

Accepted Answer

An umbrella organization of Canada's provincial and territorial securities regulators that coordinates policy

Answer

The CSA is a voluntary umbrella body of the 13 provincial and territorial securities regulators that works to harmonize regulation across Canada through National Instruments and Multilateral Instruments.

CSC - Canadian Securities Course Practice Test

CSC - Canadian Securities Course Practice Test

CSC Canadian Regulatory Environment 2