LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
FINTRAC's role is to:
- APay claims on behalf of insurers where the beneficiary's identity cannot be confirmed through normal channels
- BInvestigate agents' sales practices and suitability, in coordination with the provincial insurance regulators
- Receive and analyze reports from reporting entities, disclose intelligence to police, and assess compliance
- DLicense insurers to operate in Canada once they have demonstrated an adequate anti-money-laundering program
Correct answer: C) Receive and analyze reports from reporting entities, disclose intelligence to police, and assess compliance
FINTRAC is Canada's financial intelligence unit; agents are within its compliance regime.
Why the other options are wrong
- AFINTRAC does not pay claims.
- BSales practices are a provincial matter.
- DInsurers are licensed by OSFI and the provinces, not FINTRAC.
Exam tip
FINTRAC: AML reporting and compliance; penalties for breaches.
Common mistake
Assuming only banks report to FINTRAC.
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:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- 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:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.