Canadian Securities Course (CSC) Level 1 Practice Exam

What functions does IIROC perform?

1. Technical support for investment dealers

2. Financial and business conduct compliance, Registration, enforcement, and market surveillance.

3. Physical security services

4. Legal advisory for businesses

The correct answer is: Financial and business conduct compliance, Registration, enforcement, and market surveillance.

The correct option highlights the key regulatory and oversight functions that the Investment Industry Regulatory Organization of Canada (IIROC) performs. IIROC is responsible for overseeing investment dealers and trading activity on debt and equity marketplaces in Canada. This includes ensuring that these firms comply with financial standards and business conduct regulations, thereby protecting investors and maintaining confidence in the financial system. By emphasizing financial and business conduct compliance, IIROC upholds important industry standards and practices, which are critical for maintaining a fair and orderly market. This function involves not only monitoring firms to ensure they adhere to regulations but also taking enforcement action against those that do not meet established guidelines. Registration is another key aspect of IIROC's role, as it ensures that investment dealers and their representatives are properly licensed and qualified to provide financial services. Additionally, market surveillance is crucial for detecting and preventing trading abuses and ensuring that all market participants operate on a level playing field. The other choices represent functions that do not align with IIROC's core responsibilities. Technical support for investment dealers, while potentially relevant to operational aspects of their work, is not a primary role of IIROC. Physical security services and legal advisory functions fall outside the regulatory framework that IIROC maintains, as these services are typically provided by private firms and legal experts