Conduct and Practices, a course provided by the Canadian Securities Institute, includes all the rules and regulations that a person needs to know to work in the securities industry in Canada.
Study Notes for the Conduct and Practices Handbook® Course provides detailed information for the "need-to-know" content of this course in an easy to read and study format. Practice questions with answers are provided for each chapter as well as one sample exam for the course.
Section I - The Regulatory Environment |
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| | Chapter 1: | Canadian Securities Industry Registrant Code of Ethics and Standards of Conduct | |
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- • Know Your Client and Suitability
- • Fiduciary Duty
- • Registrant Code of Ethics
- • Registrant Standards of Duty
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| | Chapter 1: | Review Questions
Review Answers | |
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| | Chapter 2: | Regulation of the Securities Industry |
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- • General Principles of Securities Regulation
- • Key Players Involved in Securities Regulation
- • Self-Regulatory Organizations (SROs)
- • The Exchanges and Marketplaces in Canada
- • Jurisdiction of the Provinces and SROs
- • Money Laundering and Terrorist Financing in the Securities Industry
- • Investor Protection Funds
- • Protection for Depositors
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| | Chapter 2: | Review Questions
Review Answers | |
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| | Chapter 3: | Registration of Securities Industry Participants
Types of Registration |
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- • Categories of Registration
- • Exemptions from Registration
- • Registration of an Individual as a Registered Representative
- • Jurisdictional Registration Restrictions
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| | Chapter 3: | Review Questions
Review Answers | |
Section 2 - Dealing With Client Accounts |
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| | Chapter 4: | Account Opening Procedures |
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- • Opening Accounts
- • The New Client Application Form (NAAF)
- • Client Information
- • Account Opening Red Flags
- • Account Information
- • Registrant Information
- • Regulatory Section
- • Banking Information and Documentation
- • Client Records
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| | Chapter 4: | Review Questions
Review Answers | |
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| | Chapter 5: | Sales and Trading Conduct |
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- • Review of Basic Principles
- • Rules of Conduct
- • Principal vs. Agency Transactions
- • Concerns About Client Trading
- • Account Activity and Money Laundering Red Flags
- • Dealing with Confidential Information
- • Commissions and Other Compensation
- • Personal Financial Dealings
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| | Chapter 5: | Review Questions
Review Answers | |
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| | Chapter 6: | Placing Orders for Securities |
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- • How Securities are Traded
- • Placing an Order
- • Types of Orders
- • Settlement of Trades
- • Errors
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| | Chapter 6: | Review Questions
Review Answers | |
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| | Chapter 7: | Cash and Margin Account Rules |
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- • Accounting for Client Transactions
- • Cash Accounts
- • Margin Accounts
- • Free Credit Balances
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| | Chapter 7: | Review Questions
Review Answers | |
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| | Chapter 8: | Communications with Clients |
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- • General Regulations and Guidelines for Sales Literature
- • Mutual Fund Sales Communications
- • Electronic Communications
- • General Disclosure Requirements
- • Communicating Trading Information to Customers
- • Handling Client Complaints
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| | Chapter 8: | Review Questions
Review Answers | |
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Section 3- Special Transactions and Products |
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| | Chapter 9: | Bringing New Issues to Market |
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- • Bringing Securities to the Market
- • Maintaining Publicly-Trading Status
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| | Chapter 9: | Review Questions
Review Answers | |
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| | Chapter 10: | Take-over Bids, Insider Bids, and Issuer Bids |
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- • Formal Take-over Bids
- • Insider Bids
- • Exempted Take-over Bids
- • Statutory Rights of Shareholders
- • Normal Course Issuer Bids
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| | Chapter 10: | Review Questions
Review Answers | |
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| | Case Studies: | Questions
Answers | |
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Applied Ethics in the Securities Industry |
| | Chapter 1: | What is Ethics? |
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- • Ethics, Values, and the Law
- • Value Awareness
- • Understanding Values in a Larger Context
- • Basic Ethics Tenets
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| | Chapter 2: | The Importance of Ethics |
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- • The Roles of Values and Ethical Practices in an Organization
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| | Chapter 3: | Individual Responsibility |
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| | Chapter 4: | Corporate Responsibility |
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| | Chapter 5: | Ethical Decision Making |
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- • Conflict in Values
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| | Review Questions
Review Answers |
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| | Test Your Knowledge |
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| | Test Your Knowledge Answers |
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