Question

Based on the content found within the course/text, list and describe some of the prohibited mutual fund practices.

Answer 1

the registration requirements for becoming registered as a mutual fund dealing representative.?

before becoming eligible for registration, an applicant must pass an examination recognized by the applicable provincial or territorial securities commission
- a MF dealing rep (or his/her dealer) must pay a registration fee on an annual basis (if not paid, the registration expires)
- as soon as a dealing rep ceases to work for a registered dealer, registration is automatically suspended
- before a dealing representative's registration can be reinstated, notice in writing must be received by the applicable securities commission from another registered dealer of the employment or sponsorship of the dealing representative by that other dealer
- when transferring to another province or territory to work for or be sponsored by the same MF dealer, a notice must be filed with the securities commission in the
new province or territory
- upon termination, registration is suspended until reinstated upon employment with or sponsorship by another dealer

prohibited mutual fund sales practices.

number of sales practices are clearly illegal or unacceptable
- these include quoting a future price, offering to repurchase a security, selling without being registered,
advertising one's registration, sales made from one province to residents of a province or territory in which the dealing rep is not registered, sale of securities other than MFs, and acceptance of non-monetary benefits from fund managers

PLEASE STATE THE CASE