LLQP Segregated Funds & Annuities · Component 1.1 · 35% of the exam
A client's 'investor profile' typically results in a classification such as:
- AYoung, mid-career or retired, since the life stage is what the recommendation is built around
- BSmall, medium or large investor, since the amount invested determines the funds available
- CRegistered or non-registered, since the tax wrapper is the first decision in any recommendation
- Conservative, moderate, balanced, growth or aggressive, each mapped to an asset mix
Correct answer: D) Conservative, moderate, balanced, growth or aggressive, each mapped to an asset mix
Profile categories link to model asset allocations and to fund risk classifications, supporting suitability documentation.
Why the other options are wrong
- AAge is only one input; the profile category summarizes many factors.
- BWealth is not the profile, and funds are not sold by account size.
- CRegistration is a tax wrapper, not a risk classification.
Exam tip
Profile category → asset mix → fund risk rating.
Common mistake
Placing a 'conservative' client in a fund rated medium-high risk.
What this tests
CISRO competency component 1.1 — 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.