Branch Manager Sample Exam - respdealers.com

1 RESP Dealers Association of Canada 1 Branch Manager Training Program Sample Examination Questions (revised November 6, 2002) Purpose The Sample questions and answers provided below are intended to assist the Student in their preparation for the final examination. These questions and answers should help the Student determine if they fully understand the concepts and content of the Branch Manager Training Program and the standards of conduct expected of those the will be required to supervise. For each question , a series of possible answers are provided. You should select the one best answer in each case unless the question specifically instructs you to select all of answers that apply. The answers are provided for each question at the end of this section.

2 A thorough review of the material is suggested before attempting the Sample exam questions. The pass mark for the final examination is 80%. The Student is encouraged to go through these questions in an environment that would be similar to the examination format. Set aside two hours and attempt to complete the full Sample examination during that time frame. Once you are satisfied with your answers, compare your results to the answers provided, and determine if there are any areas where further review and study of the materials would be appropriate. Sample Exam - Questions 1. What are the broad objectives of securities regulation? (select all that apply) a. To protect the long-term viability of the securities industry.

3 B. To ensure that investors have access to information they need to make informed decisions. c. To establish qualifications and standards of conduct for people registered to advise investors or to trade on their behalf. d. To regulate the level of fees and charges that may be paid by investors. e. To provide rules of fair play for the markets. f. To protect the integrity of the capital market and the confidence of investors. RESP Dealers Association of Canada 22. Securities legislation requires every registered dealer to: (select all that apply) a. Recruit a large network of Sales Representatives and Branch Managers. b. Deal fairly, honestly and in good faith with clients. c. Recommend low risk investments to all clients.

4 D. Ensure that all of its activities are properly supervised and conducted in accordance with the law. e. Maintain complete records of all its business activities. 3. Violation of securities legislation can lead to: a. Cancellation or suspension of registration. b. Restrictions on the violator s ability to trade securities. c. Civil liability. d. Fines and/or imprisonment. e. Items (a) and (b). f. All of the above. 4. Which of the following instruments are securities ? (select all that apply) a. Mutual fund units. b. Common shares. c. Insurance policies. d. Scholarship Plan units. 5. The structure and tax characteristics of RESPs are governed by: a. The MFDA. b. Provincial Securities Legislation.

5 C. The IDA. d. The RESPDAC. e. Federal Legislation. 6. The rules governing the way in which Scholarship Plans can be distributed to the public are contained in: a. Federal CESG Regulations. b. The Income Tax Act. c. CCRA policies and bulletins. d. Provincial Securities Legislation. 7. The MFDA is the self-regulatory organization for: a. Scholarship Plan Dealers. b. The securities industry. c. Insurance salespersons. d. Dealers and salespersons that distribute mutual funds in Canada. RESP Dealers Association of Canada 38. In the province of Quebec, which organization is responsible for the supervision of scholarship plan dealers and agents? a. Commission des valeurs mobileires du Quebec b.

6 MFDA c. Bureau des services financiers (BSF) d. IDA e. CAIFA 9. Prior to appointment as a Branch Manager an applicant must have: a. Significant industry experience. b. Successfully completed this or a comparable course. c. Been qualified for registration as a Sales Representative. d. Been accepted as a Branch Manager by the securities regulator. e. All of the above/ 10. Which of the following are skills and characteristics of a good Branch Manager : a. Extensive knowledge of the product and regulatory requirements. b. Strong leadership skills. c. Good time management. d. Trustworthiness, honesty and integrity. e. All of the above. 11. The primary responsibilities of a Branch Manager include: a.

7 To set compliance policies for the Dealer. b. To supervise all activities related to the operation of the Branch . c. To ensure compliance in the Branch with the applicable legislation and the policies of the dealer. d. All of the above. e. All except item (a). 12. Which of the following statements is not true? a. Branch Managers must ensure that adequate training is provided to Sales Representatives. b. Branch Managers are responsible for supervising their Sales Representatives. c. Branch Managers develop the compliance policies for the Branch . d. Branch managers must ensure that staff and Sales Representatives comply with regulations and Dealer policies. RESP Dealers Association of Canada 4 13.

8 Branch Managers can manage their time and fulfill their duties more effectively by: (select all that apply) a. Maintaining good record keeping systems. b. Ensuring that Branch personnel are well trained and familiar with Branch and Dealer procedures. c. Assigning responsibility for Branch supervision to administrative support staff. d. Setting aside two specific days per month to approve new business applications and review Branch sales activities. 14. Branch Managers are required to review all new account applications: a. Submitted by new Sales Representatives. b. That are not properly completed. c. Of subscribers who have submitted a formal complaint. d. Promptly after they are received.

9 15. Sales Representatives must understand the essential financial and personal circumstances and investment objectives of their clients prior to making any recommendations. This fundamental obligation is known as: a. The Code of Sales Conduct. b. The Know Your Client Rule. c. Fiduciary Duty. d. Due Diligence. 16. Why is the Know Your Client Rule so important? a. Finding out the salary of the subscriber can help maximize the size of the sale. b. Knowing the client enables the Sales Representative, Branch Manager and Scholarship Plan Dealer to ensure that the client s best interests are served. c. The Sales Representative will be able to extract valuable information about the family makeup and potential for future business.

10 D. The KYC information will help ensure that the Sales Representative can makes prudent and suitable investment recommendations. e. Items b & d above. f. All of the above RESP Dealers Association of Canada 5 17. Which of the following information must be collected and documented to meet the Know Your Client requirements. (select all that apply) a. The subscriber s name, address and telephone number. b. The subscriber s bank account and credit card balances. c. The subscriber s employment information. d. The subscriber s social insurance number. e. Financial information about the subscriber, such as family income and net worth. 18. Ensuring that the KYC information for a subscriber is current and accurate is solely the responsibility of the Sales Representative.