Canadian Securities Course (CSC) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

What is the purpose of the "Know your client" rule?

To minimize tax liabilities

To maximize brokerage fees

To learn essential facts about the client before making decisions

The "Know your client" rule is a critical part of the financial industry that requires brokers and financial advisors to understand their clients' financial situation, risk tolerance, and investment objectives. This rule was implemented to protect investors by ensuring that financial advisors act in their clients' best interests. Option A is incorrect because minimizing tax liabilities is not the primary purpose of the "Know your client" rule. Option B is also incorrect as it suggests that the rule serves to benefit brokers, which is not the case. Option D is incorrect as the rule does not intend to speed up trading processes, but rather to thoroughly understand the client before making investment decisions on their behalf.

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To speed up trading processes

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