Chapter 3 (part 2)

Question 1

What is the IIROC?

Answer 1

It is the Investment industry regulator of Canada. It oversees all investment dealers and trading activity on the dept and equity trading on the markets.

Question 2

What are the 4 roles IIROC plays?

Answer 2

1. Financial Compliance -
   Making sure investment dealers have enough capital to carry out operations.
2. Business Conduct Compliance -
   Insure policies and procedures are followed for handling client accounts.
3. Registration -
   Insuring industry employees are educated and licensed.
4. Enforcement -
   Enforcing rules and regulations of trading for individuals and firms.

Question 3

What is the MFDA?

Answer 3

The Mutual Fund Dealer Association. It is a SRO responsible for regulating the distribution of sales of mutual funds in Canada.

Question 4

What are the two Investor protection funds?

Answer 4

1. Canadian Investor Protection fund (CIPF)

2. Mutual Fund Dealer Association Investor Protection corporation (MFDA IPC)

Question 5

What is role of the Canadian Investor Protection Fund?

Answer 5

The fund protects eligible customers in the event of insolvency of a IIROC dealer member. It also oversees the self regulatory system.

Maximum coverage of a customers general account is 1,000,000. They will cover balance leftover after company pays what they can.

customers have 180 days to file with the CIPF after a company files bankruptcy.

Question 6

What is the role of the Mutual Fund Dealers Association IPC?

Answer 6

Its role is to protect customers of MFDA members in the case of insolvency. Customers are covered up to 1,000,000.

Question 7

What is role of Arbitration for SRO’s?

Answer 7

If a client of an SRO member feels mistreated they can sue or get arbitration against the firm.

An Arbitrator cannot ask for restitutions to made to the client.

Claims cannot exceed 100,000.
If both parties agree it can exceed.

Question 8

What are the 3 roles of an Arbitrator?

Answer 8

1. Listen to facts and arguments of both parties
2. Decide how a dispute should be resolved
3. Decide what remedy if any should be imposed

Question 9

What is another option other than suing or arbitration?

Answer 9

The Ombudsman Banking services and investments

Question 10

What is the general principle of securities legislation?

Answer 10

Full, true and plain disclosure.