Once the know-your-client (KYC) information has been collected what should an Investment Dealer do with that information?

• A. Ensure the information is accurate and complete through its own verification
• B. Take reasonable steps to have the client confirm the accuracy of the information
• C. Require the client to sign a certification that the KYC information is complete and true
• D. Review the information and then destroy it to comply with data retention rules

A trader wants to apply a bearish strategy using options to profit from an expected decline in the price of a commodity. What is the most suitable approach?

• A. A long future position
• B. Purchase a call option
• C. Sell a put option
• D. Purchase a put option

Before purchasing shares in a publicly traded company, it is important to evaluate a key advantage and disadvantage of share ownership. What should be considered?

• A. Shareholders are generally repaid before bondholders in the event of insolvency
• B. Share ownership provides potential capital gains and claim on dividends if distributed
• C. Share ownership often offers fixed payments and guaranteed principal at maturity
• D. Share ownership provides limited financial risk but no influence on company direction

A Portfolio Manager with discretionary accounts controls the proxy voting on behalf of clients. The firm does not typically participate in corporate governance votes but the manager's sister-in-law has been nominated for the board, and has asked the manager to vote in favour of her nomination. The manager believes she is well qualified. How should the manager proceed?

• A. The manager should abstain from voting, as the personal relationship with the nominee creates a potential conflict of interest
• B. The manager should vote against the nomination, as it could create a potential conflict of interest even though she is qualified
• C. Vote as requested by the sister-in-law, as the firm does not typically participate in governance votes, so this situation is unlikely to matter
• D. The manager should vote in favour of the nomination, but only if they disclose the personal relationship to clients before casting the vote

An employee or Approved Person must not engage in any personal financial dealings with clients.
Which of the following is least likely to be a prohibited dealing?

• A. Providing discretionary investment management services to the client
• B. Accepting personal consideration or remuneration from the client
• C. Paying client account losses out of personal funds
• D. Lending money to or borrowing from a client