Get CIFC Dumps : Verified Canadian Investment Funds Course Exam

 Daisy could seek permission from her dealer to request a client mobility exemption with the Alberta Securities Commission. This exemption allows a registered individual in one jurisdiction to service a client who moves to another jurisdiction, without having to register in the new jurisdiction, subject to certain conditions. Some of these conditions are that the individual must be registered with a dealer that is registered in both jurisdictions, the individual must not have more than five clients in the new jurisdiction, and the individual must notify the regulator in the new jurisdiction of the exemption. References: Client Mobility Exemption

Implied needs of your clients are needs reflected by statements made by clients regarding problems and dissatisfactions1. For example, a client may say “I’m worried about outliving my savings” or “I don’t understand how this investment works”. These statements imply that the client has a need for retirement planning or financial education, respectively. Implied needs are different from explicit needs, which are statements of wants and needs made by clients1. For example, a client may say “I want to save for my child’s education” or “I need a low-risk investment”. These statements express the client’s goals and preferences clearly. Statements made by you showing readiness to solve a client’s problem are not implied needs, but rather responses to implied needs1. For example, you may say “I can help you create a retirement plan that suits your lifestyle” or “I can explain how this investment works and what are the benefits and risks”. Statements made by clients expressing the desire for lower commissions are not implied needs, but rather objections or concerns that may arise during the sales process2. For example, a client may say “Your fees are too high” or “I can get a better deal elsewhere”. These statements may indicate that the client is not convinced of the value of your service or product, or that they are trying to negotiate a lower price. References: Unit 2: Know Your Client, Unit 10: Sales Process

Whether the couple saves on income tax will be dependent on Minu’s marginal tax rate. Pension income splitting is a tax planning strategy that allows a spouse or common-law partner who receives eligible pension income to allocate up to 50% of that income to their spouse or common-law partner1. This may result in tax savings if the transferring spouse or common-law partner is in a higher tax bracket than the receiving spouse or common-law partner1. The tax savings depend on the difference between the marginal tax rates of the spouses or common-law partners1. The other statements are incorrect. Minu will not be exposed to a pension adjustment (PA) if she receives income from Saheed’s pension. A PA is a measure of the value of benefits accrued in a registered pension plan or deferred profit sharing plan during a calendar year2. It reduces the RRSP contribution room of the plan member, not the spouse or common-law partner who receives part of their pension income2. Pension income splitting is not a form of tax evasion and is not illegal based on income tax legislation. It is a legitimate way to reduce taxable income and taxes payable by shifting income from a higher-income spouse or common-law partner to a lower-income spouse or common-law partner1. Pension income splitting may change the total amount of income taxes paid by the couple, depending on their marginal tax rates. If the transferring spouse or common-law partner is in a higher tax bracket than the receiving spouse or common-law partner, pension income splitting may lower their combined taxes payable1. However, if they are in the same tax bracket, pension income splitting may not have any effect on their taxes payable1. References: Pension income splitting, Pension adjustment

One of the steps in the Know Your Client (KYC) rule is to assess the client’s financial resources, which include their income, assets, liabilities, and net worth. Asking about pension plans at work is a relevant question to determine the client’s sources of income and potential retirement savings. Pension plans can also affect the client’s risk tolerance and investment objectives, as they may provide a stable and guaranteed income in the future. Asking about children, money needs, and investment experience are also important questions, but they relate to other aspects of the KYC rule, such as personal circumstances, time horizon, and investment knowledge. References:

• Canadian Investment Funds Course (CIFC) Study Guide, Chapter 1: The Investment Funds Industry, Section 1.4: The Know Your Client (KYC) Rule, page 1-111
• Know Your Client (KYC) Definition - Investopedia

 A fund of funds is a mutual fund that invests in other mutual funds. This means that there are two levels of management fees: one for the fund of funds itself and one for the underlying funds. Therefore, fund of funds have higher fees than traditional mutual funds that invest directly in securities. References: Canadian Investment Funds Course (CIFC) | IFSE Institute, Unit 6, Lesson 2