Skip to main content
ITPrepCerts
Login
Exams Free Samples About Contact
Login Create an account

CIFC Canadian Investment Funds Course Exam

  • IFSE Institute
  • 8 free sample questions

About this exam

CIFC is the IFSE Institute exam Canadian Investment Funds Course Exam. Paid practice material for this exam is not available yet, but you can try its free sample questions.

Exam code
CIFC
Vendor
IFSE Institute
Practice questions
Not available yet
Free sample questions
8
Question bank last updated
Not available yet

Try 2 sample questions

Taken from the free sample set for CIFC.

Question 1

Reagan has accepted a role to be the Chief Revenue Officer of a charitable organization. She is currently registered as a Dealing Representative for Sunshine Financial Services.
Which of the following would apply to her?

  1. Option A:
    The dealer will closely monitor her sales activities to ensure any clients from the
    charity are not getting a discount on potential fees.
  2. Option B:
    Holding both positions at the same time is a violation of securities industry rules and regulations .
  3. Option C:
    Reagan is not required to inform her dealer of this outside activity if none of her colleagues
    from the charity become clients.
  4. Option D:
    The regulator will limit her from providing financial services to anyone associated with the charity.
Show answer and explanation

Correct answer: C

This answer is correct because according to FINRA Rule 3270, a registered representative must notify their firm in writing of any outside business activity (OBA) that involves compensation or the reasonable expectation of compensation from another person, or that may be viewed by customers or the public as part of the member’s business. However, if the OBA does not involve any of these factors, then the notification is not required. In this case, Reagan’s role as the Chief Revenue Officer of a charitable organization may not involve any compensation or any connection to her securities business, especially if none of her colleagues from the charity become clients. Therefore, she is not required to inform her dealer of this outside activity.
References = Outside Business Activities and Private Securities Transactions, Selling Away in Securities: Understanding FINRA Rule 3270

Question 2

Taylor is chatting with other parents in the park when the conversation turns to registered education savings plans (RESPs). Taylor thinks that most of what they are saying is incorrect. Which of the following
statements about self-directed RESPs is TRUE?

  1. Option A:
    The government contributes an additional grant for low income families who qualify.
  2. Option B:
    Only one beneficiary may be named per RESP.
  3. Option C:
    Educational Assistance Payments (EAPs) may only be used for tuition for a post-secondary program.
  4. Option D:
    Educational Assistance Payments (EAPs) withdrawn from the plan are not taxable.
Show answer and explanation

Correct answer: A

A self-directed RESP is a type of RESP where the subscriber (the person who opens the plan) has the freedom to choose and manage the investments within the plan, such as stocks, bonds, mutual funds, etc. A self-directed RESP can have one or more beneficiaries (the children who will use the funds for their education) and can be individual or family plans. A self-directed RESP is eligible for the Canada Education Savings Grant (CESG), which is a 20% matching grant on the first $2,500 of annual contributions per beneficiary, up to a lifetime limit of $7,200. Additionally, low income families who qualify may receive an extra 10% or 20% on the first $500 of annual contributions per beneficiary, depending on their net family income. This is called the Additional CESG. Educational Assistance Payments (EAPs) are the payments made from the RESP to the beneficiary when they enroll in a qualifying post-secondary program. EAPs consist of the CESG, the Additional CESG, and any income or growth earned within the plan. EAPs may be used for any education-related expenses, such as tuition, books, transportation, accommodation, etc. EAPs are taxable in the hands of the beneficiary, who usually has a lower tax rate than the subscriber.
References : Canadian Investment Funds Course, Chapter 5: Registered Plans 1
See all 8 free sample questions