IFIC Mutual Funds Licensing Practice Exam · Question
Which of the following is considered 'material change' for which an advisor must update the Know Your Client (KYC) information?
A significant change in financial circumstances, such as a substantial inheritance, constitutes a material change that could impact the suitability of an invest
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Question: Which of the following is considered 'material change' for which an advisor must update the Know Your Client (KYC) information?
Answer options:
- An investor changes their preferred email address for statements. ✅ An investor receives a significant inheritance, substantially increasing their net worth.
- An investor changes their employment to a similar role with comparable income.
- An investor requests to receive fund performance reports more frequently.
Correct answer: An investor receives a significant inheritance, substantially increasing their net worth.
Explanation: A significant change in financial circumstances, such as a substantial inheritance, constitutes a material change that could impact the suitability of an investment and requires an update to the KYC information, as per CIRO MFD Rule 3904.
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