LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
For a segregated fund purchase through a corporation, the implementation requires:
- ANothing special, since a corporation signs the same application as an individual through its authorized signatory and seal
- Corporate documents and resolution, identification of beneficial owners, and correct owner and annuitant naming
- CA personal RRSP application in the owner's name, since the corporation's deposit is treated as the owner's contribution
- DOnly the owner's signature, since the owner's control of the corporation is sufficient authority for the purchase
Correct answer: B) Corporate documents and resolution, identification of beneficial owners, and correct owner and annuitant naming
Corporate clients require entity verification and authority documentation.
Why the other options are wrong
- ACorporate purchases have additional documentation requirements.
- CA corporate contract is not a personal RRSP.
- DCorporate authority must be shown by resolution.
Exam tip
Corporate purchase: articles, resolution, beneficial ownership, entity ID.
Common mistake
Failing to identify beneficial owners of the corporation.
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
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