Product Due Diligence and Advice

This chapter brings together the recommendation side of CPH: suitability, product due diligence, new-issue rules, and bid-related client decisions. It is where students need to combine KYC, product knowledge, cost, conflicts, and client objectives instead of treating them as separate topics.

Topics in This Chapter

• Suitability of Investments and Investment Strategies
• Product Due Diligence
• New Issues and Prospectus Exemptions
• Take-over Bids and Issuer Bids

Exam Focus

Expect recommendation scenarios where a superficially attractive product or strategy still turns out to be weak once concentration, liquidity, cost, leverage, or client circumstances are considered properly. The strongest answers usually show why the recommendation is or is not defensible for that client now.

In this section

• Suitability of Investments and Strategies
  Assess whether a product or strategy fits the client’s profile, objectives, risk, costs, and current circumstances.
• Product Due Diligence
  Understand issuer and product review, costs, risks, liquidity, shelf approval, and ongoing monitoring in product due diligence.
• New Issues and Prospectus Exemptions
  Understand new issues, prospectus disclosure, key NI 45-106 exemptions, and exempt-market suitability controls.
• Take-Over and Issuer Bids
  Understand the current Canadian rules, shareholder protections, and decision points involved in take-over bids and issuer bids.