IAPP CIPP/C Exam - Topic 2 Question 26 Discussion

Actual exam question for IAPP's CIPP/C exam

Question #: 26
Topic #: 2

A new client is opening a Registered Retirement Savings Plan. Their investment advisor asks for their social insurance number (SIN). The advisor must tell the client that because they are opening a tax reporting product, their SIN is mandatory for tax reporting purposes and?

AOptional for identity verification purposes.

BMandatory for identity verification purposes.

COptional for secondary marketing purposes.

DMandatory for secondary marketing purposes.

Show Suggested Answer

Suggested Answer: D

by Lai at May 24, 2023, 08:46 AM

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Luke

6 months ago

Yeah, I agree, it should be mandatory for identity verification!

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Melvin

6 months ago

I thought it was just for tax purposes, not identity.

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Delfina

6 months ago

Wait, is the SIN really needed for marketing? Sounds off.

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Doyle

6 months ago

Definitely mandatory for identity verification too.

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Amie

7 months ago

It's mandatory for tax reporting, no doubt!

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Edgar

7 months ago

I’m leaning towards B, but I vaguely remember something about it being optional for marketing purposes too.

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Ozell

7 months ago

I feel like it might be optional for identity verification, but I can't recall the exact details from my study notes.

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Clay

7 months ago

I remember practicing a question similar to this, and I think the answer was that it's mandatory for both tax reporting and identity verification.

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Terrilyn

7 months ago

I think the SIN is definitely mandatory for tax reporting, but I'm not sure if it's also mandatory for identity verification.

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Delfina

7 months ago

Hmm, I'm a bit unsure about this one. The question mentions Edwin reinstating lost data from backups, but I'm not sure which specific step that corresponds to. I'll have to think it through carefully.

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Malcom

7 months ago

I'm a little confused by this one. The information about Grum's financials doesn't seem directly relevant to the question about the threshold for disclosing major customer data. I'll need to review the segment reporting requirements more closely to figure this out.

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Susana

11 months ago

Option C - 'Optional for secondary marketing purposes'? Yeah, right! I bet the advisor would try to sell the client's personal info to the highest bidder. Talk about a shady financial move!

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Alisha

12 months ago

Option B is the way to go. The SIN is essential for identity verification when opening an RRSP. Anything else would be a breach of privacy and trust. Time to put on my accountant hat!

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Susana

10 months ago

I think it's only needed for tax purposes.

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Theresia

10 months ago

C) Optional for secondary marketing purposes.

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Merilyn

10 months ago

Absolutely, it's crucial for security.

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Shawnta

10 months ago

B) Mandatory for identity verification purposes.

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Kimbery

12 months ago

Haha, Option D is so obviously wrong. Trying to make the SIN mandatory for marketing? That's a big no-no! The advisor better stick to the tax reporting requirements.

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Rusty

10 months ago

A: Exactly, keeping it separate is key for client trust.

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Bethanie

11 months ago

B: Yeah, definitely don't want to mix up tax reporting with marketing.

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Owen

11 months ago

A: B) Mandatory for identity verification purposes.

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Mirta

1 year ago

I'm going with Option B. The SIN is required for tax reporting, and the advisor has to inform the client about that. Trying to use it for marketing would be shady and illegal.

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Tracie

11 months ago

A: Exactly, it's a legal requirement.

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Gearldine

11 months ago

B: That makes sense, it's important for tax purposes.

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Kent

12 months ago

A: Your SIN is mandatory for tax reporting purposes.

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Ivory

1 year ago

But isn't it also mandatory for identity verification purposes?

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Percy

1 year ago

I agree with Audry, it's important for tax reporting.

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Audry

1 year ago

I think the SIN is mandatory for tax reporting purposes.

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Helene

1 year ago

But is it also mandatory for identity verification purposes?

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Dante

1 year ago

Option B is clearly the correct answer. The SIN is mandatory for identity verification when opening a tax-reporting product like an RRSP. It's not optional or for secondary marketing purposes. Duh!

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