Question 1

One of your clients, Rakesh, had a portfolio composed of 60% ABC Equity Fund and 40% ABC Bond Fund.Since equities were performing much better than fixed income, he had increased his holdings in ABC EquityFund to 70% and had reduced his holding in ABC Bond Fund to 30% of his portfolio.After benefitting the growth in his ABC Equity Fund for over 2 years, Rakesh is uncomfortable with thisheavy exposure to equity funds and decides to rebalance his portfolio back to 60% of ABC Equity Fund and40% of ABC Bond Fund.He instructs you to switch 10% of the portfolio from the ABC Equity Fund to the ABC Bond Fund.Which of the following statements is CORRECT?

Options :

A : Rakesh will not be subjected to a switch fee if it is outlined in the prospectus.

B : Rakesh will not be subjected to a switch fee if his equity fund is a no-load fund.

C : Rakesh will not be subjected to a switch fee if his original units were purchased with a sales charge.

D : Rakesh will not be subjected to a switch fee if his equity fund is a low-load fund.

Answer: A

Question 2

Frederic recently sold his units in a US dollar (USD) denominated mutual fund. He wants to convert theproceeds back to Canadian dollars (CAD). If he received proceeds of $1,200 USD from the sale and theexchange rate is $1 CAD for $0.99 USD, how much will Frederic receive in Canadian dollars?

Options :

A : $1-188.00

B : $1,200.00

C : $1, 12.12

D : $1,320.00

Answer: C

Question 3

Your client, Kimberly has investments in both registered and non-registered plans. Which of the followinginvestment strategies is best suited for Kimberly from a tax perspective?

Options :

A : Include investments paying capital gains in the registered plan and foreign pay investments in the nonregistered plan.

B : Include domestic pay assets in the registered plan and foreign pay assets in the non-registered plan.

C : Include interest paying investments in the registered plan and dividend paying investments in the nonregistered plan.

D : Include dividend paying investments in the registered plan and interest paying investments in the nonregistered plan.

Answer: C

Question 4

As per CIRO policy, what is a required step after receiving an emailed client complaint regardingdissatisfaction with a product?

Options :

A : Acknowledge the complaint in writing

B : Make contact to collect additional information

C : Notify senior management

D : Send a copy of the complaint to CIRO

Answer: A

Question 5

Why is it important to include ethical decision-making as a Standard of Conduct?

Options :

A : Ensures conformity with externally established standards.

B : Enables CIRO to regulate the actions and behaviours of registered individuals.

C : Provides flexibility so registrants can use their own judgement.

D : Allows the security industry to operate with the trust and confidence of the public.

Answer: D

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