CISI New 2026 IFC Test Tutorial (Updated 490 Questions) [Q84-Q98]

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CISI New 2026 IFC Test Tutorial (Updated 490 Questions)

IFC Exam Questions Dumps, Selling CISI Products

CISI IFC Exam Syllabus Topics:

Topic	Details
Topic 1	Understanding Alternative Managed Products: This domain introduces investment products beyond traditional mutual funds, including ETFs, segregated funds, and hedge funds, examining their features, structures, benefits, risks, and regulatory treatment.
Topic 2	The Modern Mutual Fund: This domain examines mutual fund structures, types, and operations, covering equity, fixed income, balanced, and specialty funds, their legal structures, pricing mechanisms, purchase processes, and associated fees.
Topic 3	Ethics, Compliance, and Mutual Fund Regulation: This domain addresses ethical standards and regulatory requirements for advisors, covering professional conduct, compliance obligations, conflicts of interest, disclosure requirements, and rules established by regulators and self-regulatory organizations.
Topic 4	Understanding Investment Products and Portfolios: This domain explores various investment products including stocks, bonds, and securities, along with portfolio construction principles, asset allocation strategies, and how different products work together to meet client objectives.
Topic 5	Analysis of Mutual Funds: This domain addresses evaluation tools and techniques for mutual fund performance, including quantitative measures like returns and risk metrics, and qualitative factors like manager experience and investment style.

NO.84 During the calendar year, Firmansyah received a $1,800 eligible dividend from a large Canadian bank and a
$US dollar (USD) dividend of $882.02 from a foreign-based corporation. The USD/CAD exchange rates is
1.3605.
Firmansyah’s federal marginal tax bracket is 29%. The enhanced dividend gross-up rate is 38% and the federal dividend tax credit rate for eligible dividends is 15%.
What federal tax liability will be result from his investment income?

$522.00

$348.00

$695.76

$870.00

NO.85 What bias results in investors valuing an asset that they own over an asset that another individual owns?

Representativeness

Endowment

Risk aversion

Status Quo

NO.86 You are comparing the performance of ABC Equity Fund and XYZ Equity Fund to their benchmark. Indicate the correct statement.
Return | Year 1 | Year 2 | Year 3 | 3 Year Compound Return
Benchmark | -2.0% | 12.6% | 20.6% | 10.0%
ABC Equity Fund | -10.0% | 16.0% | 24.0% | 9.0%
XYZ Equity Fund | 8.0% | 9.0% | 10.0% | 9.0%

Fund XYZ would have offered a lower likelihood of loss if a client needed to sell the investment

Fund ABC showed greater consistency in its simple annual returns

Fund ABC demonstrated a superior performance in a bearish market

Fund XYZ offered less protection on the downside

NO.87 What party is responsible for ensuring that a public corporation’s total number of outstanding common shares does not exceed its total number of authorized shares?

Registrar

Trustee

Portfolio manager

Distributor

NO.88 Thomas, a resident of Ontario, is a full-time university student. He does food delivery to supplement his income. During the school year, he works on weekends and works full-time during his summer break.
Thomas’ pensionable earnings were $16,000 for the year. How much must Thomas contribute to CPP when CPP contribution rate is 5.95%?

$743.75

$912.00

$1,425.00

NO.89 Sudhir is interested in an investment where he can share corporation profits. Sudhir understands basic market mechanics and is willing to accept volatility; however, he does not consider himself a sophisticated investor.
What type of underlying asset class should Sudhir consider?

Commercial paper

Mortgages

Options

Preferred shares

NO.90 Saheed is a retiree who is considering splitting his pension income with his wife, Minu.
Which of the following outcomes may occur if he shares his pension benefits?

Whether the couple saves on income tax will be dependent on Minu’s marginal tax rate.

Minu will be exposed to a pension adjustment (PA) if she receives income from his pension.

This is a form of tax evasion and is therefore considered illegal based on income tax legislation.

Regardless of how much income each person reports, the total amount of income taxes will not change.

NO.91 A client has $950,000 in his RRSP account and $550,000 in his non-registered account held in nominee name with Tradewell Mutual Funds.
In the event of his dealer, Tradewell Mutual Funds declaring insolvency, what is the total amount the client be eligible to receive from the Mutual Fund Dealers Association of Canada Investor Protection Corporation (IPC)?

The client will not be eligible for any coverage.

The client will be eligible for coverage of $950,000.

The client will be eligible for coverage of $1,500.000.

The client will be eligible for coverage of $550,000.

NO.92 Exchange traded funds (ETFs) that track an index and index mutual funds have many similarities. However, what is a major difference between these two products?

While ETFs are prone to tracking errors, index funds are perfectly aligned with their underlying index.

ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day.

The market price of ETFs always matches the underlying basket of securities while there can be a discrepancy in pricing index funds.

ETFs do not have management fees since they are exchange traded while index funds do incur such fees.

NO.93 What criteria does the independent review committee use to determine if a potential conflict of interest, such as interfund trading, should be approved?

Will the action achieve a fair and reasonable result for the fund?

Will the action contravene National Instrument 81-102?

Will the action contravene a unitholder’s statutory rights?

Will the action require unitholder approval?

NO.94 Which money market fund yield is calculated as the most recent seven-day yield?

Current

Nominal

Duration

Effective

NO.95 Which of the following asset allocation statements is correct?

A fixed income component of less than 25% is appropriate for conservative portfolios

You should review a client’s asset allocation when the investment environment changes

Portfolio security selection determines the long-term growth potential

Equity weightings greater than 90% should not be recommended

NO.96 What is a statistical measure of price fluctuation that illustrates how a stock’s price fluctuates around its average?

Spread.

Sharpe ratio.

Correlation coefficient.

Standard deviation.

NO.97 Which type of fund is least likely to produce capital gains income?

Mortgage fund

Short-term bond fund

Money market fund

Preferred dividend fund

NO.98 An unlicensed person was hired at a securities administrator, and they accepted their first case, which may result in suspending a registrant’s license. The new hire immediately requests a subpoena of witnesses (and evidence) and requests guidance from the FATF. What error did the new hire likely commit?

Requesting legally binding documentation

Proceeding on a case without proper registration

Engaging an unrelated inter-governmental department

Investigating a licensing violation case