LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A Locked-In Retirement Account (LIRA) or locked-in RRSP holds:
- ATFSA money that has been designated for retirement and can no longer be withdrawn
- Pension transfers that remain subject to pension law, with withdrawals restricted
- CRESP money that was not used for education and has been rolled over for retirement
- DFreely accessible savings that the holder has chosen to label as retirement money
Correct answer: B) Pension transfers that remain subject to pension law, with withdrawals restricted
Locked-in status preserves the pension purpose. Jurisdiction (federal or provincial) sets the rules, including limited unlocking for hardship, small balances or age.
Why the other options are wrong
- ATFSA funds are unrelated and never locked-in.
- CUnused RESP funds follow their own rules, not pension law.
- DLocked-in funds are restricted by legislation.
Exam tip
LIRA: pension money, locked, matures to LIF or annuity, jurisdiction rules apply.
Common mistake
Promising a client full access to LIRA funds.
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.