10 / 12
BCO
®
Study Guide
Thank You and Good Luck!
Designed for use with the money-back-guaranteed
Online BCO
®
Practice Exams and Flash Cards
available at
www.SeeWhyLearning.com.
SeeWhy Financial Learning
7
Provision of Advice and Follow-Up (Chapter 7)
The sales representative must exercise good judgement and due diligence when
recommending a transaction to a client. This holds true even if it is an unsolicited order,
which is any order for which the client expressed interest in buying or selling the fund.
•
The representative must have sufficient knowledge and training.
•
The representative must understand the client's personal circumstances, including
goals, risk tolerance, time horizon, and investment knowledge.
Client Relations with the Branch Compliance Officer (Chapter 8)
The BCO will likely have direct contact with clients in certain situations, including
assisting a sales representative with advising the client on a complex financial matter and
dealing with complaints.
Approval of new mutual fund accounts:
The BCO generally has sole authority to
approve new mutual fund accounts. In some circumstances, this authority can be
delegated to an alternate BCO if the primary BCO will be unavailable.
Complaints
The BCO must ensure a system is in place for handling client complaints. This includes
the following:
•
Respecting the dealer's policies.
•
Recording and documenting complaints.
•
Forwarding certain more serious complaints to the regional compliance officer
(RCO) and/or head office compliance officer.
•
Maintaining complaint files in a manner in which they are easily accessible if the
regulator, dealer auditors, or MFDA auditors wish to review such files.
The Sales Representative and the Branch Compliance Officer
and Order Execution (Chapter 9)
The BCO is responsible for supervising the activities of the sales representatives. This
includes the following: