A mutual fund representative has just processed an initial purchase order for a client. What is the latest point at which the representative must deliver the Fund Facts document for the mutual fund purchased?

Question: A mutual fund representative has just processed an initial purchase order for a client. What is the latest point at which the representative must deliver the Fund Facts document for the mutual fund purchased?

Answer options:

• No later than two business days after the purchase order is received. ✅ Before the client's purchase order is accepted.
• Within 24 hours of the trade being executed.
• As soon as reasonably practicable after the purchase, but no later than the settlement date.

Correct answer: Before the client's purchase order is accepted.

Explanation: National Instrument 81-101 requires the Fund Facts document to be delivered to a client before the client's purchase order is accepted. This ensures the client has key information prior to making the investment decision.