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BCO
®
Study Guide
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3
CHAPTER 1: THE CLIENT-SERVICE PROCESS
This chapter will provide an overview of the entire course with a high-level overview of
each chapter.
A branch compliance officer (BCO) has three primary functions. He or she must ensure
that the mutual fund activities of the branch:
1.
Conform to
good business practice.
2.
Comply with
securities laws and legislation
including those set by the Mutual
Fund Dealer's Association (MFDA).
3.
Conform to the dealer's
head office requirements.
In many cases, a branch manager will also be a BCO, so his or her responsibilities will
extend beyond ensuring compliance. For example, good business practice would also
require the walkway to the branch to be clear of snow and the windows to be cleaned.
Course Overview
The Preparation for Client Services (Chapters 2, 3, and 4)
The BCO is responsible for ensuring that branch activities conform to good business
practice and regulatory and legal requirements, and that internal policies are adhered to.
The image of the branch should instil confidence and make clients feel comfortable (i.e.
branch is clean, organized, well-stocked with pamphlets, etc.).
National Instrument 31-103 requires it to be clear to clients which legal entity they are
dealing with. For example, a bank branch employee may wear two hats depending on the
transaction. For some transactions, such as opening a bank account, the employee may be
representing the bank itself. On the other hand, when selling a mutual fund, he or she is
representing the mutual fund dealer. It must be clear to the client which entity he or she is
dealing with, and this can be accomplished through various means, such as signage,
brochures, and written disclosure.