Chartered Investment Manager (CIM) Practice Exam · Question
Under Canadian regulations, when must a Canadian investment firm provide disclosure regarding fees and charges to a prospective retail client?
CIRO Rule 3100 (formerly IIROC Rule 2700 and MFDA Rule 2.1.3) mandates that investment firms provide clear and comprehensive disclosure of all fees and charges
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Question: Under Canadian regulations, when must a Canadian investment firm provide disclosure regarding fees and charges to a prospective retail client?
Answer options:
- Only upon the client's explicit request.
- Only when the client makes their first withdrawal. ✅ Before or at the time the client opens an account.
- Annually, as part of their tax documentation.
Correct answer: Before or at the time the client opens an account.
Explanation: CIRO Rule 3100 (formerly IIROC Rule 2700 and MFDA Rule 2.1.3) mandates that investment firms provide clear and comprehensive disclosure of all fees and charges to clients at or before account opening.
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