BCO Study Guide DEMO

BCO

Study Guide

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Supervision

The BCO is responsible for supervising registered staff (licenced to sell mutual funds)

and non-registered staff.

Supervision of Non-Registered Staff (Not Licenced to Sell Mutual Funds)

Certain mutual fund administrative tasks do not require the employee to be registered

(licenced). For example, you do not need a mutual fund licence to schedule an

appointment with a client to meet with a mutual fund advisor.

National Instrument 31-103 outlines activities referred to as "

business triggers

" that

require the individual to be registered. For example, a non-registered person could

schedule a client/advisor appointment. However, if that same client asked, "Is this a good

time to invest?", that would be a business trigger that requires registration.

Supervision of Registered Staff (Licenced to Sell Mutual Funds)

The BCO's responsibilities for registered staff are set out in the regulations. These

responsibilities include the following:

•

Assist in the education, training (including pre- and post-licencing training), and

the actual licencing of representatives.

•

Supervision activities, including keeping the regulator informed through certain

notices; for example, updating the regulator if a registered person resigns or is

terminated.

•

Completion and forwarding of registration applications to the regulator, renewals,

reporting of material changes such as employee address of terminations.

The BCO must ensure that no branch employee advises or furthers a trade in mutual

funds without being registered (licenced) in the appropriate jurisdiction regardless of his

or her level of knowledge. For example, even Warren Buffett (arguably the most

successful investor in the world) would not be authorized to sell a mutual fund without

being properly registered.

Specifically, the BCO is required to address conflict-of-interest concerns and ensure that

disclosure rules are met. The BCO's responsibilities will also include ensuring there is a

sufficient routing/communications system in place for trades, dealing appropriately with

incoming and outgoing mail, order processing and settlement, client records, and dealing

with complaints.