Daily ChallengeCIREOverview of Canadian securities regulatory frameworkMedium

Which of the following best describes the 'Reasonable Person' standard as it applies to the Proficiency Principle under IDPC Rule 2602?

8 attempts · 87.5% correct

A standard that assumes an individual is competent if they have no prior disciplinary record.

A standard used to determine if an individual's education, experience, and training are sufficient to perform a regulated activity competently.Correct

A standard that applies only to the Dealer Member's executives when overseeing retail branches.

A standard that limits an Approved Person's liability if a client loses money on a recommended investment.

Why

Rule 2602(1)(ii) uses the reasonable person standard to measure whether the individual's practical background matches the requirements of their role.

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