27 - Working with Institutional

Question 0

When is the KYC rule less strict?

Answer 0

If the customer is a permitted client (eg a Canadian bank, trust company, an advisor/dealer, pension fund, government, or individuals with net financial assets > $5m, or net assets > $25m)

Question 1

What 7 groups are classified as Institutional Clients?

Answer 1

1. Corporate treasuries
2. Insurance companies
3. Pension funds
4. Mutual funds
5. Hedge funds
6. Endowments
7. Trusts

Question 2

What does IIROC Rule 2700 require?

Answer 2

A dealer need only determine if an institutional client is sophisticated and capable of making its own investment decisions.

Question 3

What are 5 key positions in the institutional market?

Answer 3

1. Research Associate
2. Analyst
3. Institutional Sales
4. Institutional Trader
5. Investment Banker

Question 4

What three areas of the dealer’s business is the Investment Banker responsible for building?

Answer 4

1. Corporate finance (raise debt/equity capital for corps)
2. Public Finance (for gov)
3. Mergers & Acquisitions

Question 5

What are three ways that accounts are divided among salespeople?

Answer 5

1. Geographically
2. By account type
3. By relationships

Question 6

What are the two types of traders and what are they responsible for?

Answer 6

1. Agency traders - manage trades for institutional clients

2. Liability traders - manage the dealer’s trading capital