CIFC-Canadian Investment Funds Course Exam

Exam Code: CIFC

The Canadian Investment Funds Course (CIFC) exam, administered by the Investment Funds Institute of Canada (IFIC), is designed to qualify individuals to become licensed mutual fund representatives in Canada. The exam covers a broad range of financial and regulatory topics to ensure candidates understand the responsibilities and knowledge required to sell mutual funds.

Here are the main topic areas typically covered in the CIFC exam:

1. Understanding the Canadian Investment Marketplace

• Structure of the Canadian financial services industry
• Role of regulatory bodies (e.g., IIROC, MFDA, AMF)
• Economic principles and financial system overview

2. The Role of a Mutual Fund Representative

• Duties and ethical responsibilities
• Know Your Client (KYC) and suitability rules
• Anti-money laundering (AML) compliance
• Handling client accounts and complaints

3. Types of Investment Products

• Mutual funds (open-end, closed-end)
• Segregated funds
• Exchange-traded funds (ETFs) – basic overview
• Other products: GICs, stocks, bonds, derivatives (brief)

4. Understanding Mutual Funds

• Structure and operation
• Types of mutual funds: money market, fixed income, balanced, equity, specialty
• Fees and charges: MER, loads, trailing commissions
• Calculating NAV (Net Asset Value)

5. Investment Theory and Product Suitability

• Time value of money
• Risk and return
• Asset allocation and diversification
• Portfolio construction principles

6. Taxation

• Tax treatment of various investment income (interest, dividends, capital gains)
• Registered vs. non-registered accounts
• RRSP, TFSA, RESP, RRIF, etc.
• Tax-efficient investing strategies

7. Regulation and Ethics

• Securities regulation in Canada
• Role of SROs and provincial regulators
• Code of conduct and ethics
• Privacy laws and fiduciary responsibilities

8. Know Your Client (KYC) and Financial Planning

• Client profiling and goal setting
• Understanding client needs, time horizon, and risk tolerance
• Suitability of recommendations

9. Calculations and Performance Measurement

• Fund performance metrics (e.g., compound rate of return)
• Understanding benchmarks
• Risk-adjusted return (Sharpe ratio – high level)
• Sales charge calculations

Exam Format

• 100 multiple-choice questions
• 3-hour duration
• Passing score: Typically 60–70% (confirm with IFIC directly)
• Computer-based, available at test centers or online