IFSE Institute CIFC Exam - Topic 4 Question 6 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 6
Topic #: 4

[All CIFC Questions]

10 years ago, Felipe opened a registered retirement savings plan (RRSP) account and purchased a mutual fund. The mutual fund purchased included a 7-year deferred sales charge (DSC). At the time of making his investment, him and his Dealing Representative agreed that he had a 25-year growth objective. Since Felipe knew that he was not planning to use his investment until he retired, he was not

concerned about the DSC. Although the rate of return did vary from year-to-year, he never noticed his mutual fund having a drop in value. This gave Felipe more confidence in the investment. As a result, he has never made any changes to his investment.

What category of Know Your Client (KYC) information has been given?

AFinancial circumstances

BInvestment experience

CRisk profile

DPersonal circumstances

Show Suggested Answer

Suggested Answer: B

by Zachary at Jun 13, 2025, 01:54 AM

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Laila

3 months ago

Definitely a case of knowing his personal circumstances!

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Chandra

3 months ago

Wait, he never noticed a drop? That seems unlikely.

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Essie

3 months ago

I think this is more about his risk profile.

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Jules

4 months ago

Sounds like he has a solid long-term plan!

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Geoffrey

4 months ago

I agree, the DSC shouldn't matter if he's in it for the long haul.

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Garry

4 months ago

I feel like it could be personal circumstances too, since it discusses his long-term goals and how he views his investment. It's tricky!

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Amber

4 months ago

I remember a practice question that focused on KYC categories, and I think this one might lean more towards financial circumstances because it mentions his retirement plans.

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Gwenn

5 months ago

I'm not entirely sure, but it seems like it could also relate to his risk profile since he wasn't worried about the DSC and had a long-term growth objective.

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Ellsworth

5 months ago

I think this question is about Felipe's investment experience since it talks about his confidence in the mutual fund and how he hasn't made changes.

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Stanford

5 months ago

I've got this! The question is clearly asking about Felipe's investment experience, since it describes his long-term investment in a mutual fund and his lack of concern about the deferred sales charge.

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Ahmed

5 months ago

I'm a bit confused on this one. The scenario covers a lot of different KYC factors, so I'll need to think through which one is the most applicable to the question being asked.

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Merilyn

5 months ago

Okay, the scenario mentions Felipe's investment objective, risk tolerance, and investment experience. I think the key category here is investment experience, since it's the most relevant to the details provided.

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Hyun

5 months ago

Hmm, the question is asking about the specific category of KYC information, not just the general KYC details. I'll need to carefully analyze the information given to determine the right category.

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Gabriele

6 months ago

This seems like a straightforward question about KYC information. I'll focus on identifying the key details provided in the scenario.

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Precious

8 months ago

I'm surprised Felipe didn't make any changes to his investment, even though the rate of return varied from year to year. Maybe he's just a 'set it and forget it' kind of guy. Either that, or he's just really good at ignoring the ups and downs of the market.

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Dustin

8 months ago

Haha, the question mentions that Felipe 'never noticed his mutual fund having a drop in value.' I guess he's been living under a rock for the past 10 years! That's some serious selective attention right there.

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Gilma

6 months ago

User 2: Yeah, some people prefer to set it and forget it.

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Linwood

7 months ago

User 1: Maybe Felipe just doesn't check his investments often.

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Dahlia

9 months ago

I believe it could also be Investment experience, as Felipe's confidence in the investment and not making any changes show his experience in managing his investments.

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Gennie

9 months ago

The correct answer is D) Personal circumstances. The question provides details about Felipe's investment goals and his intention to use the investment for retirement, which falls under the personal circumstances category of KYC.

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King

8 months ago

Got it. Thanks for clarifying!

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Jessenia

8 months ago

That's correct. His intention to use the investment for retirement falls under the personal circumstances category of KYC.

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Bernardine

8 months ago

Oh, I see. So Felipe's retirement plans and long-term goals would be considered personal circumstances, right?

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Natalya

8 months ago

D) Personal circumstances

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Frank

8 months ago

C) Risk profile

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Rosenda

8 months ago

B) Investment experience

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Brock

8 months ago

A) Financial circumstances

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Judy

9 months ago

I agree with Dottie. Felipe's 25-year growth objective and not planning to use his investment until retirement indicate his financial circumstances.

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Rochell

9 months ago

This seems to be a question about the client's investment time horizon, which is one of the key KYC factors. The fact that Felipe had a 25-year growth objective is clearly relevant here.

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