LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The role of the 'Autorité des marchés financiers' (AMF) is relevant to a common-law agent when:
- ANever, since the AMF regulates only securities dealers and has no role in the licensing of insurance agents
- The agent wishes to serve Quebec residents, since Quebec has its own regulator, licensing regime and rules
- CFiling taxes on commission income earned from clients who live in Quebec, since the AMF collects the provincial tax
- DSelling in Ontario, since the AMF and FSRA operate a joint licensing regime for agents in the two neighbouring provinces
Correct answer: B) The agent wishes to serve Quebec residents, since Quebec has its own regulator, licensing regime and rules
Cross-border practice into Quebec requires AMF licensing and knowledge of civil-law rules.
Why the other options are wrong
- AThe AMF is relevant for Quebec clients.
- CThe AMF has nothing to do with filing taxes.
- DFSRA governs Ontario.
Exam tip
Quebec clients → AMF licence and civil-code rules.
Common mistake
Servicing a Quebec resident on an Ontario licence.
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.