CH9 responsibilities of the dealing representative (questions (1 )Know…
CH9 responsibilities of the dealing representative
1 )Know Your Client
The client's name, address and telephone number, investment needs and objectives, birth date and Social Insurance Number.r risk tolerance
(essential facts about every client)
our dealer is required to maintain records that: (a) Permit determination of the dealer’s capital position. (b) Demonstrate compliance with the firm’s internal control procedures and with its compliance policies and procedures. (c) Provide an audit trail for client orders, instructions and transactions. (d) Demonstrate compliance with know-your-client and suitability rules. (e) Document compliance and supervision actions taken by the dealer. (
must apply the same Know Your Client standards always
not for maximizing the size of the sale to the subscriber
Whenever you become aware of significant changes to the subscribers, you must update the Know Your Client information
The Know Your Client Rule in National Instrument 31-103
requires you to determine if your RESP client is
an insider of a publicly traded issuer.
may not provide investment advice
to a client even if the client refuses to disclose Know Your Client information
entitles the client to waive the obligation to provide Know Your Client information if they choose.
A client who is reluctant to provide KYC information can be informed
That you are subject to legal obligations to know your client so that you can advise them properly. (c) You and your dealer are obliged to hold personal information in confidence.
2 )Suitability Rule
must recommend only those investments that are suitable for your client's needs and objectives
3) Fair Dealing
Offering objective advice
based on the client's best interests.
Providing balanced and
about the product being sold.
g fairly, honestly
and in good faith with clients.
4) Before a sales representative can pay or receive a referral fee
a) Ensure there is
a written agreement
between their dealer and the outside party making or receiving the referral that sets out the terms of the referral arrangement.
about the referral arrangement to their client,
disclose enrolment fees doesnt give u power to charge
withdraw from the enrolment
for up to 60
5) registered in that jurisdiction
If you are not registered in the jurisdiction to which the client moves, your dealer may have to reassign the subscriber to another representative who is registered there
6) primary contact person for the subscriber
sales representative(dealing representative
sales representative is responsible
Knowing his or her client
a) Have a good knowledge of the laws that apply to you.
b) Know and comply with the policies and procedures established by your dealer.
c) Know and comply with the RESPDAC's Code of Ethical Business Conduct.
d) Comply with Know Your Client rules.
7) trade confirmation
a) The trade confirmation
clearly states any enrolment fees.
b) The trade confirmation outlines the
details of the security purchased.
c) Your dealer must send subscribers
a written confirmation of the purchase.
not require 60 days
8) every new subscriber understands about the plan
a) Their right to withdraw from the enrolment without cost for up to 60 days.
b) The investment objectives of the plan they are participating in.
c) The structure, potential benefits and risks of the plan.
d) The enrolment, administrative, depository and other fees that the subscriber may be charged.
e) The options available to the subscriber to withdraw funds from the plan if and when necessary.
9 Enrolment Application Form
our dealer's policies will likely require a local supervisor to review and approve every new Enrolment Application Form
it has been submitted
a) The Application Form enables you to
properly document the subscription.
c) Your local supervisor will usually be
obliged to review and approve the Application Form
d) It is the
primary record of the relationship between dealer and subscriber.
10 Ombudsman for Banking Services and Investment should they not accept the resolution to their complaint
within 180 days
11 Registered dealers
12 Dealers must provide relationship disclosure information to clients
Before the dealer buys or sells securities for the client or advises the client to buy, sell or hold securities.