LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A client has both a personal RRSP and a group RRSP. For the assessment:
- AThe group plan is a pension, so its contributions create a pension adjustment rather than using room
- Both draw on the same deduction room, including employer contributions to the group RRSP
- CEach plan has its own room, so the client can contribute the annual limit to both
- DThe group plan is locked-in, so only the personal RRSP can be withdrawn before retirement
Correct answer: B) Both draw on the same deduction room, including employer contributions to the group RRSP
RRSP room is per person. Employer group RRSP contributions count as the employee's contributions.
Why the other options are wrong
- AA group RRSP is not a registered pension plan and creates no pension adjustment.
- CThere is one RRSP deduction room per person, shared by every RRSP held.
- DGroup RRSPs are not locked-in, though employer rules may restrict withdrawals.
Exam tip
One RRSP room across all RRSPs, including group.
Common mistake
Over-contributing by ignoring group RRSP amounts.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.