Seg Funds Investor Profile & Investment Basics question: non-registered segregated fund contract with a 10-year maturity guarantee and a deferred

Seg FundsInvestor Profile & Investment Basics

Ana, 47, lives in Winnipeg, Manitoba, with her husband and two teenagers. Three years ago she bought a non-registered segregated fund contract with a 10-year maturity guarantee and a deferred sales charge schedule. She now calls her agent to say she has lost her job as a warehouse supervisor and will need cash for household bills within 6 months. Her husband's wages cover about half of the family's expenses. Apart from the contract, she has $15,000 in a savings account and no other investments. What should the agent do?

A Tell her she cannot withdraw before maturity
B Wait until her next contract anniversary
C Move everything to the most aggressive fund
D Update her profile and review suitability

Show the answer and explanation

Answer: D. Update her profile and review suitability

Know-your-customer information must be kept current, and a material change in circumstances, such as a job loss and a short-term cash need, calls for an updated profile and a review of suitability. Withdrawals are possible, though they reduce guarantees and may trigger charges. Source: CCIR/CISRO Segregated Funds Guidance (Nov 2025), s. 3 (know your customer and suitability) (as at 12 Oct 2026); CISRO LLQP Curriculum (May 2015), Segregated Funds and Annuities module, component 1.1 (client's situation, investment objectives and investor profile).

Common mistake

Treating KYC as a one-time form.

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Joan, 61, is a retired librarian in Victoria, British Columbia. She is widowed, owns her home and has no debts. Besides a small defined benefit pension and her CPP, she has $240,000 of retirement savings, all of it in a savings account paying 1%, because she remembers her late husband losing money in the stock market. Inflation has been running at 3% a year. Which risk is she most exposed to?Hugo, 52, an electrician in Saskatoon, Saskatchewan, plans to retire in about 13 years. Most of his non-registered segregated fund contract is in a long-term bond fund that a previous agent chose for him, and the rest is in a Canadian equity fund. Over the following months the Bank of Canada raises interest rates sharply. What is the likely effect on the value of his bond fund?Victor, a retired railway worker in Moncton, New Brunswick, turned 65 in November 2025, so he was 65 on 1 January 2026. He converted his RRSP to a RRIF earlier in 2025, and the RRIF was worth $200,000 on 1 January 2026. He is divorced and lives alone. He also receives a pension of $1,900 a month from the railway. What is his minimum RRIF withdrawal for 2026?

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Original study material mapped to the public CISRO curriculum; not a real test question.Not affiliated with CISRO, CCIR or any provincial insurance regulator. Verify figures and rules against current guidance before relying on them.