Free IFSE Institute CIFC Actual Exam Questions
The questions for this exam were last updated on January 7, 2026
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Question No. 1
Josephine is a Dealing Representative with Sunshine Mutual Funds Inc. for over 10 years. Her brother
Jonathan has an account with Sunshine Mutual Funds Inc., too. Jonathan wants Josephine to manage
his
portfolio and make investment decisions on his behalf. Jonathan trusts his sister to make better
investment choices than he can. He also wants to give Power of Attorney (POA) to Josephine so she
can have full authority over his account.
How can Josephine respond to her brother's request?
Jonathan has an account with Sunshine Mutual Funds Inc., too. Jonathan wants Josephine to manage
his
portfolio and make investment decisions on his behalf. Jonathan trusts his sister to make better
investment choices than he can. He also wants to give Power of Attorney (POA) to Josephine so she
can have full authority over his account.
How can Josephine respond to her brother's request?
Select one option, then reveal solution.
Question No. 2
You are collecting know your client (KYC) information for your new client, Yael. She has recently
accepted an early retirement package from her employer and has $100,000 to invest. She is looking
for an investment that will provide income to help pay her ongoing monthly expenses. Without this
extra income, she would have trouble paying her bills. From your discussions, Yael understands that
markets fluctuate and says she is comfortable with high risk. Which of the following would be a
suitable investment?
accepted an early retirement package from her employer and has $100,000 to invest. She is looking
for an investment that will provide income to help pay her ongoing monthly expenses. Without this
extra income, she would have trouble paying her bills. From your discussions, Yael understands that
markets fluctuate and says she is comfortable with high risk. Which of the following would be a
suitable investment?
Select one option, then reveal solution.
Question No. 3
Yesterday, Mariana who is new to investing and purchased mutual funds for the very first time. She
shared her excitement with her good friend, Julius. However, after Julius learned about her
investment, he admits that he had a bad experience with mutual fund investing and that he lost
money. Mariana regrets not talking to Julius prior to making her decision. Her feelings of enthusiasm
have changed to fear. She is wondering if it is too late to change her mind and cancel her purchase
order.
Which statement regarding the right of withdrawal is CORRECT?
shared her excitement with her good friend, Julius. However, after Julius learned about her
investment, he admits that he had a bad experience with mutual fund investing and that he lost
money. Mariana regrets not talking to Julius prior to making her decision. Her feelings of enthusiasm
have changed to fear. She is wondering if it is too late to change her mind and cancel her purchase
order.
Which statement regarding the right of withdrawal is CORRECT?
Select one option, then reveal solution.
Question No. 4
Which of the following qualifies as personal information under the Personal Information Protection
and Electronic Documents Act (PIPEDA)?
and Electronic Documents Act (PIPEDA)?
Select one option, then reveal solution.
Question No. 5
Your client Gerard is 30 years old and plans to retire at age 65. He has a mutual fund portfolio of
$40,000 in which he invests $1,500 monthly. Gerard's objective is to use these funds to meet the 20%
down payment requirement to buy a house for $650,000.
What is Gerard's investment time horizon not considering market fluctuations?
$40,000 in which he invests $1,500 monthly. Gerard's objective is to use these funds to meet the 20%
down payment requirement to buy a house for $650,000.
What is Gerard's investment time horizon not considering market fluctuations?
Select one option, then reveal solution.
Question No. 6
Loretta is looking for a well diversified equity fund. Her ideal mutual fund would hold investments
within and outside Canad
a. Although she is seeking growth, Loretta also wants a mutual fund that invests in quality
companies.
Which of the following mutual funds would be the best choice for Loretta?
within and outside Canad
a. Although she is seeking growth, Loretta also wants a mutual fund that invests in quality
companies.
Which of the following mutual funds would be the best choice for Loretta?
Select one option, then reveal solution.
Question No. 7
You are meeting a potential client, William, for the first time. He is a high net worth individual and
you are keen to get his business. Which of the following would you consider the most important to
create an impressive first impression on your potential client?
you are keen to get his business. Which of the following would you consider the most important to
create an impressive first impression on your potential client?
Select one option, then reveal solution.
Question No. 8
Sonya meets with her client Elijah to review different investment approaches that could be offered to
help him reach his financial goals. Part of that discussion included Sonya mentioning factors such as
inflation, interest rates, and rates of return. Which stage of the Strategic Investment Planning (SIP)
process does this describe?
help him reach his financial goals. Part of that discussion included Sonya mentioning factors such as
inflation, interest rates, and rates of return. Which stage of the Strategic Investment Planning (SIP)
process does this describe?
Select one option, then reveal solution.
Question No. 9
Nelson is a Dealing Representative with True Wealth Advisors Inc., a mutual fund dealer. Nelson
follows proper procedures related to his firm’s Relationship Disclosure Information (RDI). Which of
the following CORRECTLY describes how Nelson is permitted to evidence that he satisfied his RDI
obligation?
follows proper procedures related to his firm’s Relationship Disclosure Information (RDI). Which of
the following CORRECTLY describes how Nelson is permitted to evidence that he satisfied his RDI
obligation?
Select one option, then reveal solution.
Question No. 10
Maxine is a portfolio manager who 15 years ago, purchased 100 shares of Never2Tacky, a social
media corporation for Aspirations Global Technology Fund. She purchased the stock when it was
trading at $10. Last year, the peak market price was $120. Presently, it is trading at $99. News
agencies are now reporting that additional regulations regarding social media companies are about
to be agreed upon by G7 countries. Maxine is concerned the market value of Never2Tacky is going to
drop. She buys a put option with an exercise price of $95 with an expiry of 9 months.
What type of strategy is Maxine using?
media corporation for Aspirations Global Technology Fund. She purchased the stock when it was
trading at $10. Last year, the peak market price was $120. Presently, it is trading at $99. News
agencies are now reporting that additional regulations regarding social media companies are about
to be agreed upon by G7 countries. Maxine is concerned the market value of Never2Tacky is going to
drop. She buys a put option with an exercise price of $95 with an expiry of 9 months.
What type of strategy is Maxine using?
Select one option, then reveal solution.
Question No. 11
Janine will celebrate her 71st birthday this year. She currently has a lot of money in a personal
registered retirement savings plan (RRSP) and knows there are rules about what she can do with
those funds. Which of the following is TRUE?
registered retirement savings plan (RRSP) and knows there are rules about what she can do with
those funds. Which of the following is TRUE?
Select one option, then reveal solution.
Question No. 12
Which of the following statements regarding mutual fund fees is correct?
Select one option, then reveal solution.
Question No. 13
Which statement regarding the underwriting process and over-the-counter (OTC) markets is
CORRECT?
CORRECT?
Select one option, then reveal solution.
Question No. 14
Your client, Cosmo, recently inherited $50,000 from his uncle. He wants to use this money towards
his retirement savings. Cosmo is a 50-year old, self-employed carpenter and he earns on average
$65,000
per year. He has a registered retirement savings plan (RRSP) with the bank worth $425,000 and a tax-
free savings account (TFSA) worth $46,000. He started saving when he was 25 years old and has
always
made his own investment decisions. His money is mostly invested in balanced funds. He feels most
comfortable with these types of mutual funds since they offer potential investment growth but
without being too aggressive. Cosmo has no other assets.
What additional information do you need about Cosmo to fulfill your know your client obligation?
his retirement savings. Cosmo is a 50-year old, self-employed carpenter and he earns on average
$65,000
per year. He has a registered retirement savings plan (RRSP) with the bank worth $425,000 and a tax-
free savings account (TFSA) worth $46,000. He started saving when he was 25 years old and has
always
made his own investment decisions. His money is mostly invested in balanced funds. He feels most
comfortable with these types of mutual funds since they offer potential investment growth but
without being too aggressive. Cosmo has no other assets.
What additional information do you need about Cosmo to fulfill your know your client obligation?
Select one option, then reveal solution.
Question No. 15
Charlotte has received proceeds from a deceased family member’s estate. Charlotte decides to visit
Malik, who’s a Dealing Representative at her bank. She tells Malik, she does not know much about
trading ETFs, but she wants to invest in ETFs. Charlotte says she feels fortunate to have this money
and that she’s not worried about losing it because she never planned on having any of it.
What element of the Know Your Client (KYC) information has Malik been able to learn?
Malik, who’s a Dealing Representative at her bank. She tells Malik, she does not know much about
trading ETFs, but she wants to invest in ETFs. Charlotte says she feels fortunate to have this money
and that she’s not worried about losing it because she never planned on having any of it.
What element of the Know Your Client (KYC) information has Malik been able to learn?
Select one option, then reveal solution.