Navigation/Documentation
Who do we ask Compliance questions/requests in the absence of BCO and ACBO?
What's the timeframe to address any complaints to the BCO?
Reach out to the "Buddy Branch" - Josh Gould
1 Business Day
What steps must be followed to process a post‑dated mutual fund purchase request?
IF answered, -100 points
Post‑dated mutual fund purchase requests are NOT ALLOWED and CANNOT BE PROCESSED under any circumstances
You just won 100!!!!!!!!
YAY!
As a Mutual Fund Representative (MFR), you are responsible for updating client's investor profiles and reviewing recommended and suitable solutions, you also have an obligation to add detailed notes to client files: What are some of the Acceptable Note Rationals?
- How the conversation was initiated (ex: client called, you called)
- Reason or objection of the discussion
- Detail of the discussion and recommendations provided
- Details of the transactions the client agreed upon
A transfer‑in results in an unsuitable holding based on the client’s SIS. The client understands the risk and wants to keep the product to avoid a DSC. What must be done before the holding can be kept?
The MFR may refuse the trade or,
The client must complete and sign a Client‑Initiated Trade (CIT) form, confirming they were advised the holding is unsuitable, understand and accept the risks, and insist on keeping the product despite the recommendation.
What is the process for correcting deficiencies?
CBC - SSI Centralized Supervision
If the original IDF or required supporting documentation cannot be located, the deficiency must be corrected by manually completing a new eForm and obtaining the client’s signature on the updated documentation to ensure records are complete and compliant.
What must be done if a client wants to appoint more than one attorney on an SSI account?
The SSI POA Standard (eForm 1924516[E]/1924532[F]) can be used to appoint only one attorney for an SSI account.
If multiple attorneys are to be appointed, non-standard POA documentation will be required.
What is a short‑term trading fee, when does it apply for ScotiaFunds and Dynamic Funds, and what must the MFR do before processing a short‑term trade?
A short‑term trading fee may be charged when a client sells or switches mutual fund units within a short holding period, typically 30–90 days, and generally does not apply to cash‑equivalent funds. For ScotiaFunds and Dynamic Funds, the fee applies if the trade occurs within 30 days and is equal to 1% of the redemption value. If a client is making a short‑term trade, the MFR must disclose the fee before processing the transaction, document the discussion and fee details in the client file, and advise that SSI does not allow short‑term trading fees to be rebated.
What's an Outside Business Activity and when do you have to report it?
- An OBA is any business, employment, or commercial activity conducted by a representative outside of their role with the firm, whether paid or unpaid, that could reasonably give rise to a conflict of interest or the perception of one.
- Within 5 business days
What disclosure do you need to include at the bottom of a SECURED email?
"Secure emails will only be held for viewing in the Secure Email System for 180 days before automatic deletion. To prevent losing any information you wish to keep longer than the 180-day period, please save the information received on your personal computer."
When conducting a mutual fund transaction over the phone, what key disclosures and information must be reviewed with the client?
Trailing commissions paid to SSI; applicable short‑term trading fees; review and delivery of current Fund Facts documents (including timing and delivery requirements for phone trades and PACs); discussion and documentation of all fees and charges; tax implications such as capital gains; and confirmation that third‑party funds cannot be purchased in SSI Dealer accounts and are not available for re‑purchase if redeemed.
How would you suspect an Anti-Money Laundering activity on an existing SSI account? and what would you do?
What are the prerequisites for executing a leveraged trade in a non‑registered or TFSA account at SSI?
- SSI Head Office Compliance pre‑approval is required for all leveraging strategies in non‑registered and TFSA accounts, and failure to obtain approval may result in reversal of the leveraged trades.
- A clear and logical rationale for the strategy must be provided. For retired or self‑employed clients, the MFR and BCO analysis must also assess the client’s ongoing ability to service the loan from regular income sources.
What transactions are permitted for a client who is considered “out of province,” and under what circumstances may an exception apply for certain clients?
- For a client who is considered out of province, only withdrawal transactions are permitted.
- An exception applies for military clients. Clients who are members of the Canadian Armed Forces may continue to complete all permitted transactions, including purchases, provided their CIS profile is updated to reflect military status and appropriate supporting documentation confirming military service is uploaded and retained.
- In addition, where instructions are provided by a valid Power of Attorney, instructions may be accepted even if the client resides outside the province, as long as the POA is properly executed, remains valid, and is recognized in the representative’s province of registration (for example, an Ontario‑based POA providing instructions for a client residing in British Columbia).
What are the components of Management Expense Ratio?
The components of the Management Expense Ratio (MER) include:
Management fees, which cover the fund's management, marketing, and administrative costs.
Operating costs, which include brokerage fees on securities trading, audit fees, and unit holder communications.