Conduct

1.

1 point

If values directly affect our ethical behaviour, what do we need to do first?

Determine both our short and long term goals.

Take the time to truly understand just what our personal values are.

Identify where we see our life heading.

Always act in accordance with our core values.

2.

1 point

What is something that an ethical corporate culture is not intended to offer?

Support when employees behave ethically.

Making employees feel confident to do the right thing when facing a dilemma.

Consistently satisfying all stakeholders needs.

Having employees trust the system enough to raise an issue internally before problems occurs.

3.

1 point

What is the term "Principal Regulator" associated with?

The Passport System.

The PCMLTFA regulations.

Registration of new dealer members.

Investigation and enforcement proceedings.

4.

1 point

What are "coat-tail" provisions most commonly associated with?

A final prospectus.

An exchange offering bid.

Securities without full voting rights.

A preliminary prospectus.

5.

1 point

Which of the following responsibilities reflects the philosophies of mature, ethical companies?

Responsibilities to the industry.

Responsibilities to shareholders/partners/Board of Directors.

Responsibilities to society and the general public.

Responsibilities to co-workers.

6.

1 point

What rule is of paramount importance for the securities industry?

Complete and accurate information.

Protection of client assets.

Confidentiality.

Know your client.

7.

1 point

Which of the following is an offeror permitted to change after a take-over bid has commenced?

Lowering the proportion of outstanding securities included in the bid.

Increasing the consideration offered.

Adding new conditions.

Reducing the amount of time that the bid is valid.

8.

1 point

What is a "valuation report" most commonly associated with?

A preliminary prospectus.

A final prospectus.

A take-over bid circular.

An IIROC financial audit.

9.

1 point

Which of the following is not a basic ethics tenet of the Canadian securities industry?

Respect for individual well-being and others' rights.

Duty of care and concern for others.

Acceptance of clients' needs.

Acting in good faith.

10.

1 point

A formal take-over bid involves an offer to acquire what minimum percentage of securities?

10%.

20%

25%

15%

11.

1 point

Trisha is one of your clients and she wants to buy a stock she saw as a strong buy recommendation from your dealer member’s research report. Though the stock is rated a good buy, it is classified as high risk. If the client has a conservative profile on her NAAF, can you accept the order?

The order can be accepted because the stock is rated as a good buy.

The order can be accepted because the research report was sent by your dealer member.

The order cannot be accepted because the investment is high risk.

The order cannot be accepted because the investment does not suit the investor's profile.

12.

1 point

An investment product that has undergone a material modification is subject to what level of product review?

None.

Compliance review.

As a new product.

Review of disclosure documents.

13.

1 point

What is the "fairness rule" commonly associated with?

IPO allocations.

IA compensation.

Discretionary accounts.

Consideration paid to security holders in a take-over bid.