LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A joint ownership application for a non-registered segregated fund should confirm:
- ANothing beyond both signatures, since joint ownership is a matter between the owners rather than a concern of the insurer
- BOnly the first owner's KYC, since the profile of one owner is sufficient for a jointly held contract
- CThat the contract is registered, since jointly owned segregated funds must be held inside an RRSP or TFSA
- Survivorship or tenants in common, tax reporting split, each owner's KYC, and successor arrangements
Correct answer: D) Survivorship or tenants in common, tax reporting split, each owner's KYC, and successor arrangements
Joint ownership has legal and tax implications (attribution, reporting) that must be set up correctly.
Why the other options are wrong
- AJoint ownership details have legal and tax consequences that must be set up correctly.
- BBoth owners need KYC.
- CRegistered plans cannot be jointly owned.
Exam tip
Joint ownership: survivorship form, tax split, dual KYC.
Common mistake
Setting up joint ownership without addressing attribution.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 3
- A client's spouse must sign for:
- When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:
- The implementation of a recommendation involving a switch from one seg fund to another within a contract requires:
- A client wishes to designate a charity as beneficiary of a segregated fund. Implementation should:
- For a deferred annuity implemented for a client, the agent should confirm:
- The agent's record of the implementation should be retained:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.