Securities and Mutual Fund Regulation
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
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Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Identify that the provincial/territorial governments create securities legislation through securities acts.
- Identify that the provincial/territorial governments delegate securities regulation to their respective securities regulatory authorities (SRAs).
- Identify the applicable securities regulatory authorities (SRAs) in Canada.1
- Explain the purpose of the applicable provincial/territorial securities regulatory authorities (SRAs), such as:
- Investor protection
- Fair access to markets
- Reduction of systematic risk
- Regulation of the marketplaces within their jurisdictions.
- Explain the role of the provincial/territorial securities regulatory authorities (SRAs), such as:
- Administer provincial/territorial securities laws
- Ensure that those who sell securities within the province/territory are registered to do so and conduct themselves according to applicable laws and professional standards
- Regulate public companies and investment funds that are available for purchase by investors in their jurisdiction
- Explain the provincial/territorial securities acts’ broad principles of regulation, such as:
- Regulation of product distribution
- Disclosure
- Registration
- Enforcement
- Consumer protection
- Identify the self-regulated organizations in Canada2.
- Identify that Investment Industry Regulatory Organization of Canada’s (IIROC) and the Mutual Fund Dealers Association’s (MFDA) regulatory functions are established under Recognition Orders from provincial/territorial securities regulatory authorities (SRAs).
- Identify that the Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization (SRO) that oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
- Identify the mandate of the Investment Industry Regulatory Organization of Canada (IIROC).3
- Explain how the Investment Industry Regulatory Organization of Canada (IIROC) supports the provincial/territorial securities regulatory authorities (SRAs).4
- Identify that the Mutual Fund Dealers Association of Canada (MFDA) is the national self-regulatory organization (SRO) that oversees the distribution of mutual funds in Canada.
- Identify the mandate of the Mutual Fund Dealers Association of Canada (MFDA).5
- Explain how the Mutual Fund Dealers Association of Canada (MFDA) supports the provincial/territorial securities regulatory authorities (SRAs).6
- Identify the mandate of the Canadian Securities Administrators (CSA).7
- Identify that only approved registrants may provide advice on and transact in securities-related business in the provinces in which:
- The registrants are registered
- The securities are registered and qualified to be distributed
- The client resides
- Identify the types of penalties that may be imposed for violating securities legislation, such as:
- Suspension of a licensed representative
- Deregistration as a licensed representative
- Monetary penalties
- Market access restrictions
- Re-training or re-certification
- Criminal prosecution or imprisonment
- Identify the options available to securities industry consumers for dispute resolution, such as:
- File a complaint with the advisor / firm / dealer involved
- File a complaint with the Ombudsman for Banking Services and Investments (OBSI)
- File a complaint with a self-regulatory organization (SRO)
- File a complaint with a securities regulatory administrator (SRA)
- Take legal action
REFERENCES
1 https://www.securities-administrators.ca/about/contact-us/
2 https://www.osc.ca/en/industry/market-regulation/self-regulatory-organizations-sro
3 https://www.iiroc.ca/about-iiroc
4 https://www.iiroc.ca/about-iiroc/what-we-do
5 https://mfda.ca/wp-content/uploads/StratPlan18-22.pdf
6 http://www.mfda.ca/regulation/rules.html
7 http://www.securities-administrators.ca/aboutcsa.aspx?id=77
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
---|---|---|---|---|---|---|---|---|---|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Identify that the provincial/territorial governments create securities legislation through securities acts.
- Identify that the provincial/territorial governments delegate securities regulation to their respective securities regulatory authorities (SRAs).
- Identify the applicable securities regulatory authorities (SRAs) in Canada.1
- Explain the purpose of the applicable provincial/territorial securities regulatory authorities (SRAs), such as:
- Investor protection
- Fair access to markets
- Reduction of systematic risk
- Regulation of the marketplaces within their jurisdictions
- Explain the role of the provincial/territorial securities regulatory authorities (SRAs), such as:
- Administer provincial/territorial securities laws
- Ensure that those who sell securities within the province/territory are registered to do so and conduct themselves according to applicable laws and professional standards
- Regulate public companies and investment funds that are available for purchase by investors in their jurisdiction
- Explain the provincial/territorial securities acts’ broad principles of regulation, such as:
- Regulation of product distribution
- Disclosure
- Registration
- Enforcement
- Consumer protection
- Identify the self-regulatory organizations in Canada.2
- Identify that Investment Industry Regulatory Organization of Canada’s (IIROC) and the Mutual Fund Dealers Association’s (MFDA) regulatory functions are established under Recognition Orders from provincial/territorial securities regulatory authorities (SRAs).
- Identify that the Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization (SRO) that oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
- Identify the mandate of the Investment Industry Regulatory Organization of Canada (IIROC).3
- Explain how the Investment Industry Regulatory Organization of Canada (IIROC) supports the provincial/territorial securities regulatory authorities (SRAs).4
- Identify that the Mutual Fund Dealers Association of Canada (MFDA) is the national self-regulatory organization (SRO) that oversees the distribution of mutual funds in Canada.
- Identify the mandate of the Mutual Fund Dealers Association of Canada (MFDA).5
- Explain how the Mutual Fund Dealers Association of Canada (MFDA) supports the provincial/territorial securities regulatory authorities (SRAs).6
- Identify the mandate of the Canadian Securities Administrators (CSA).7
- Identify that only approved registrants may provide advice on and transact in securities-related business in the provinces in which:
- The registrants are registered
- The securities are registered and qualified to be distributed
- The client resides
- Identify the types of penalties that may be imposed for violating securities legislation, such as:
- Suspension of a licensed representative
- Deregistration as a licensed representative
- Monetary penalties
- Market access restrictions
- Re-training or re-certification
- Criminal prosecution or imprisonment
- Identify the options available to securities industry consumers for dispute resolution, such as:
- File a complaint with the advisor / firm / dealer involved
- File a complaint with the Ombudsman for Banking Services and Investments (OBSI)
- File a complaint with a self-regulatory organization (SRO)
- File a complaint with a securities regulatory administrator (SRA)
- Take legal action
REFERENCES
1 https://www.securities-administrators.ca/about/contact-us/
2 https://www.osc.ca/en/industry/market-regulation/self-regulatory-organizations-sro
3 https://www.iiroc.ca/about-iiroc
4 https://www.iiroc.ca/about-iiroc/what-we-do
5 https://mfda.ca/wp-content/uploads/StratPlan18-22.pdf
6 http://www.mfda.ca/regulation/rules.html
7 http://www.securities-administrators.ca/aboutcsa.aspx?id=77