LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Athe ombudservice for life and health insurance, which covers all financial advice
- Bthe provincial insurance regulator, which supervises everything the agent does professionally
- the securities self-regulatory organization with which the agent's dealer is a member
- Dthe insurer whose life products the agent also sells to the same group of clients
Correct answer: C) the securities self-regulatory organization with which the agent's dealer is a member
Insurance and securities activities are supervised separately. The dealer and its self-regulatory organization review the mutual fund business, while the insurance regulator remains responsible for the insurance side.
Why the other options are wrong
- AThat ombudservice covers life and health insurance complaints.
- BAn insurance regulator's mandate does not extend to securities business.
- DAn insurer has no authority over an agent's mutual fund activity.
Exam tip
Dual licence equals two supervisors, each for its own line of business.
Common mistake
Expecting one regulator to cover both insurance and securities conduct.
What this tests
CISRO competency component 2.1 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
- The provincial regulator's power to conduct 'market conduct examinations' means:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.