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BCO
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Study Guide
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8
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Verification of account-opening documentation.
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Supervising the acceptance of orders and related documentation, including the
processing of such orders.
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Ensuring disclosure documents such as the Fund Facts document are provided to
the client at the appropriate time.
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Implementing a system to identify improper sales techniques being used by sales
representatives. Historically, offenders tend to follow a recognizable pattern.
Although order execution takes place at the head office level (including the calculation of
the fund's net asset value per unit), the BCO should still have an in-depth knowledge of
mutual fund pricing.
Clients who wish to use leverage (invest borrowed funds) must be provided with
disclosure documents outlining the risk of such strategies. The representative must have
the client acknowledge receipt of such disclosure, preferably in writing.
The Branch Compliance Officer and the Head Office (Chapter
10)
The final stage of the supervision process involves the BCO liaising (communicating and
keeping informed) with the Regional Compliance Department or Head Office
Compliance Department.
Failure to supervise is a major concern to regulators, including the Mutual Fund Dealers
Association (MFDA). MFDA reviews generally include an examination of the adequacy
of supervisory procedures used by a branch.
The Branch Compliance Officer Control and Supervision
(Chapter 11)
This chapter will review and summarize the internal control systems and procedures that
should be implemented at the branch level in order to ensure compliance with industry
rules and procedures.