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IAPP CIPP/C Exam - Topic 2 Question 26 Discussion

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?
D) Mandatory for secondary marketing purposes.
A) Optional for identity verification purposes.
B) Mandatory for identity verification purposes.
C) Optional for secondary marketing purposes.

IAPP CIPP/C Exam - Topic 2 Question 26 Discussion

Actual exam question for IAPP's CIPP/C exam
Question #: 26
Topic #: 2
[All CIPP/C Questions]

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?

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Suggested Answer: D

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

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Luke
10 months ago
Yeah, I agree, it should be mandatory for identity verification!
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Melvin
11 months ago
I thought it was just for tax purposes, not identity.
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Delfina
11 months ago
Wait, is the SIN really needed for marketing? Sounds off.
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Doyle
11 months ago
Definitely mandatory for identity verification too.
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Amie
11 months ago
It's mandatory for tax reporting, no doubt!
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Edgar
11 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
11 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
11 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
11 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
12 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
12 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
1 year 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
1 year 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 year ago
I think it's only needed for tax purposes.
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Theresia
1 year ago
C) Optional for secondary marketing purposes.
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Merilyn
1 year ago
Absolutely, it's crucial for security.
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Shawnta
1 year ago
B) Mandatory for identity verification purposes.
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Kimbery
1 year 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
1 year ago
A: Exactly, keeping it separate is key for client trust.
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Bethanie
1 year ago
B: Yeah, definitely don't want to mix up tax reporting with marketing.
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Owen
1 year 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
1 year ago
A: Exactly, it's a legal requirement.
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Gearldine
1 year ago
B: That makes sense, it's important for tax purposes.
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Kent
1 year 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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Avery
1 year ago
No problem, always good to know why certain information is needed.
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Felicitas
1 year ago
I didn't know that, thanks for the info.
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Tanesha
1 year ago
Exactly, the SIN is required for tax reporting purposes.
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Lamonica
1 year ago
B) Mandatory for identity verification purposes.
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Jutta
1 year ago
I agree with Maurine, it's important for tax reporting.
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Maurine
1 year ago
I think the SIN is mandatory for tax reporting purposes.
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