10 / 12
CPH
®
Study Guide
Chapter 1: Canadian Securities Industry
Registrant Code of Ethics and Standards of Conduct
Designed for use with the money-back-guaranteed
Online CPH
®
Practice Exams and Flash Cards
available at
www.SeeWhyLearning.com.
SeeWhy Financial Learning
8
Standard C: Professionalism
Tip:
Focus on the bolded points, as they are easily mistaken to fall under Standard D.
•
Client orders should be entered only per their instructions and with their approval
unless a discretionary or managed account agreement is in place.
•
Acts in furtherance of a trade should be performed by those who are registered to
process such trades.
•
Only securities approved by the directors of your firm and by the appropriate
regulatory body should be sold to your clients.
•
Personal financial dealings with clients should be avoided.
•
All methods of soliciting and conducting business should be done in such a way
that it projects a positive image of the industry.
•
Personal trading activity should be kept to a reasonable level during business
hours.
•
Other personal activities should not reflect negatively on the industry (e.g.
participating in a violent demonstration).
•
The registrant should engage in continuous education.
Standard D: Conduct in Accordance with the Securities Acts
•
This standard focuses primarily on insider trading.
•
All provincial regulators and exchanges have rules surrounding insider trading. If
there is a situation in which more than one set of rules is in place, then the
registrant must adhere to the strictest set of rules.
Standard E: Confidentiality
•
Client information must be kept confidential and cannot be used by the advisor or
firm for any purpose other than the reason the information was collected from the
client. See "PIPEDA" below:
Personal Information Protection and Electronic Documents Act (PIPEDA)
The federal government announced a strategy to position Canada as a world leader in the
development and use of electronic commerce. To achieve this, the government adopted
the Personal Information Protection and Electronic Documents Act, or PIPEDA. The act