Practice Test GeeksTICO - Travel Industry Council of Ontario Practice Test
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Financial Record-Keeping Requirements Flashcards

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

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  1. Under Ontario Regulation 26/05, for how long must a registered travel agent retain client transaction records?

    Answer: 7 years from the date of transaction

    Ontario Regulation 26/05 requires registered travel agents to retain financial and client records for a minimum of 7 years. This aligns with standard Ontario financial record-keeping requirements and allows TICO to conduct audits well after transactions occur.

  2. Which of the following records is a TICO-registered travel agency required to maintain?

    Answer: Records of all client transactions, including contracts, receipts, and correspondence

    Registrants must maintain complete records of all client transactions, including contracts, receipts, invoices, and relevant correspondence — not just selected transactions. Comprehensive record-keeping is essential for regulatory compliance and complaint investigation.

  3. TICO conducts a compliance audit of a travel agency. What authority does TICO have regarding the agency's financial records?

    Answer: TICO can require the registrant to produce any financial and business records related to their registered activities

    Under the Travel Industry Act, TICO has the authority to require registrants to produce financial and business records related to their travel industry activities during an audit or investigation. This is a broad power not limited to trust accounts alone.

  4. A travel agency's records show that client payments were deposited into the agency's general operating account rather than a trust account. Which regulation does this primarily violate?

    Answer: Ontario Regulation 26/05, which governs trust account and financial record-keeping requirements for registrants

    Ontario Regulation 26/05 governs financial requirements for TICO registrants, including trust account obligations and proper record-keeping. Depositing client funds into a general operating account instead of a trust account is a direct violation of these financial regulations.

  5. Which of the following best describes the purpose of TICO's financial record-keeping requirements for registrants?

    Answer: To enable TICO to verify that registrants are handling client funds properly and complying with the Travel Industry Act

    The primary purpose of TICO's financial record-keeping requirements is to enable TICO to verify that registrants are handling client funds properly, maintaining required trust accounts, and operating in compliance with the Travel Industry Act and Ontario Regulation 26/05.

  6. A travel agency closes and its owner destroys all client transaction records after 2 years to save storage space. Under TICO's rules, this is:

    Answer: A violation, because records must be retained for the full mandatory period regardless of whether travel has been completed

    Destroying records before the end of the mandatory retention period is a violation of Ontario Regulation 26/05, regardless of whether the clients have already travelled. The retention requirement exists to support regulatory investigations and consumer complaints that may arise after the fact.