IFC Exam Dumps - Investment Funds in Canada (IFC) Exam

Mutual fund redemption proceeds must generally be paid within two business days after the date on which the NAV per security used to establish the redemption price is calculated, assuming all required redemption documentation and procedures have been satisfied. This settlement requirement is designed to provide investors with reasonably prompt access to proceeds after redeeming conventional mutual fund securities. The rule should not be confused with the investor ' s statutory right of withdrawal, which can also involve a two-business-day period but relates to cancelling a purchase rather than receiving redemption proceeds. The current NI 81-102 framework continues to require redemption proceeds to be paid no later than two business days after the applicable pricing date. Therefore, the correct answer is C. 2 business days .

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The custodian, typically a trust company, receives and holds all funds from investors and other sources, managing the fund’s assets and expenses. The feedback from the document states:

" The Custodian. When a mutual fund is established, a separate organization, most often a trust company, is appointed as the fund’s custodian. The custodian receives and holds the fund’s money obtained from all sources – investors buying the fund’s units or shares, income earned by the fund’s investment portfolio, proceeds from the sale of the fund’s investments, holds all the fund’s assets and distributes the fund’s money to pay the fund’s expenses. "

Global equity funds can act as a hedge against a decline in the Canadian dollar’s value, increasing the investment’s value in Canadian dollars if the foreign currency strengthens. The feedback from the document states:

" Global mutual funds are attractive because they can provide a hedge against a decline in the relative value of the Canadian dollar. For example: if investors buy a Japanese fund, and then the value of the Canadian dollar falls relative to the yen, the Canadian dollar value of that investment will increase even if the value of the fund’s units in yen has remained unchanged. "

Jabir will be eligible to open new client accounts and sell investments only upon formal confirmation from the regulator. Before he can start his activities as a dealing representative, he must complete the registration process, which includes passing the proficiency course, applying for registration through his dealer, and obtaining approval from the securities regulator in his jurisdiction. References: Guide to Broker-Dealer Registration

Unused RRSP contribution room is the amount of RRSP contributions that you did not deduct in previous years and are available to deduct in the current year. Unused RRSP contribution room can be carried forward to future years indefinitely, until you use it up or reach the age of 71. You can find your unused RRSP contribution room on your notice of assessment or by logging into your Canada Revenue Agency account. References: What to do with unused RRSP, PRPP or SPP contributions

A labour-sponsored investment fund (LSIF) is a type of mutual fund that invests in small and medium-sized businesses that are not publicly traded. LSIFs are sponsored by labour unions or associations and offer tax credits to investors. However, LSIFs are also very risky and illiquid investments that may not be suitable for investors with a medium risk profile, such as Banji. Therefore, Quinton should not proceed with the purchase of the Prospect Labour-Sponsored Fund because it is not suitable for Banji based on her current KYC. Therefore, C is the correct answer. References: Labour-Sponsored Investment Funds (LSIFs): Definition and How They Work - Investopedia, Canadian Investment Funds Course (CIFC) | IFSE Institute

Participating preferred shares are a type of preferred shares that offer its shareholders the opportunity to receive additional dividends if the company’s profit exceeds a stated level. These dividends are paid in addition to the fixed dividends that are normally paid to preferred shareholders. Participating preferred shares allow shareholders to benefit from both fixed and variable income streams, depending on the company’s performance. References: Participating Preferred Stock Definition - Investopedia, Preferred Shares Explained | TD Direct Investing