Tony, the investment manager of True North Canadian Equity Fund is deciding on some new investments. He has done an economic analysis of the various provinces and sectors of the Canadian economy and has determined that Nova Scotia and Alberta present the best prospects. He has also identified potential in the oil and gas sector. He narrows down his selection to an oil supply firm in Medicine Hat and a drilling company in Halifax.
What investment approach is Tony employing?

• A. growth at a reasonable price (GARP)
• B. top-down
• C. bottom-up
• D. value investing

A mutual fund sales representative is under pressure to meet certain sales objectives. However, he consistently ignores these quotas when making client recommendations. Which standard of conduct has he followed?

• A. The obligations to put the client's interests first
• B. The maintenance of a high standard of professional knowledge
• C. The obligation to keep client information confidential
• D. Provision of appropriate cautions for potentially unsuitable investments

Pacari is a Dealing Representative with Cavalry Investments, a mutual fund dealer. Pacari's client, Darsha, is a long-time customer and an elderly widow. Darsha depended on her husband, for financial decisions before he passed. Pacari has also noticed that Darsha's capacity seems to be declining over the years. Luckily, with Pacari's help, Darsha has been managing her finances well. However, Darsha's daughter has been getting involved recently and has even tried to enter trades without Darsha's authorization. Pacari is particularly concerned about the last transaction for Darsha's account: a very large redemption. Pacari fears that Darsha has become a victim of financial exploitation and he raises his concerns with his dealer Cavalry. Which of the following statements about how Cavalry may proceed is CORRECT?

• A. Cavalry can place a permanent hold on Darsha ' s account and disallow all future transactions.
• B. Cavalry must place a temporary hold on Darsha ' s account to disallow all transactions for the account.
• C. Cavalry must proceed with the redemption because temporary and permanent holds are not permitted.
• D. Cavalry can place a temporary hold on Darsha ' s account to temporarily disallow the redemption.

What allocation strategy does an investment advisor apply when adjusting risk and return levels according to behavioural tendencies ?

• A. Best practical
• B. Strategic
• C. Tactical
• D. Profit maximizing

Fabiola is an optometrist and an incorporated professional. She has fallen behind schedule regarding saving for retirement. She is considering opening an Individual Pension Plan (IPP).
What provision might encourage her to use an IPP?

• A. Withdrawals will be taxable to the business, not to Fabiola, when she starts receiving her pension income.
• B. Her pension benefit is not pre-determined because it is based on the returns on investments which she chooses.
• C. When Fabiola files her personal tax return, she will be able to claim contributions as an eligible deduction.
• D. Contributions to her IPP can be greater than what applies to contributions for registered retirement savings plans.