IAPP Exam CIPP/C 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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Susana

3 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

3 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

1 months ago

I think it's only needed for tax purposes.

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Theresia

2 months ago

C) Optional for secondary marketing purposes.

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Merilyn

2 months ago

Absolutely, it's crucial for security.

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Shawnta

2 months ago

B) Mandatory for identity verification purposes.

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Kimbery

3 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

2 months ago

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

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Bethanie

2 months ago

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

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Owen

3 months ago

A: B) Mandatory for identity verification purposes.

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Mirta

4 months 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

3 months ago

A: Exactly, it's a legal requirement.

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Gearldine

3 months ago

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

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Kent

3 months ago

A: Your SIN is mandatory for tax reporting purposes.

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Ivory

4 months ago

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

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Percy

4 months ago

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

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Audry

4 months ago

I think the SIN is mandatory for tax reporting purposes.

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Helene

4 months ago

But is it also mandatory for identity verification purposes?

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Dante

4 months 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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