CPH (Canadian Securities & Investment) key terms

The collection of relevant facts about a client circumstances and objectives, distinguished from merely obtaining a signature on a form.

The willingness to accept uncertainty and losses, distinguished from the financial ability to absorb a particular loss.

The financial ability to withstand an adverse outcome, which can differ from a client stated appetite for risk.

An assessment connecting the relevant product or service with the client circumstances under applicable requirements, without guaranteeing a positive outcome.

An examination of a product structure, risks, costs and limitations sufficient for the relevant responsibility, rather than reliance on its marketing label.

A competing interest relevant to impartial professional judgment, whose treatment depends on the applicable obligations rather than disclosure alone.

Information needed for the relevant informed assessment, including qualifications that can change the meaning of a statement.

The person or entity issuing a security under its conditions, whose disclosure responsibilities are distinct from the intermediary duties.

An intermediary performing a defined listing-related role, including relevant advice and diligence, rather than guaranteeing the future investment value.

An offering disclosure document under the relevant framework, whose accuracy and completeness do not themselves promise a profit.

A connected person or entity under the relevant test, whose transactions and interests can require additional investigation or disclosure.

The origin and handling of information used in an assessment, helping distinguish independent support from repeated copies of one assertion.

The relevant period over which funds may remain invested before they are needed, affecting liquidity and risk assessment.

The ability to meet obligations or convert an asset under relevant conditions, distinguished from accounting profitability alone.

An assessment of the ability and willingness to meet an obligation, using relevant cash resources, conditions and evidence.

A legally defined interest supporting an obligation against an asset, which does not eliminate valuation, recovery or enforceability risk.

The cost of obtaining resources under the relevant model, distinguished from the amount of principal borrowed or repaid.

A measure derived from relevant assets and liabilities under a stated basis, which requires the correct unit count and valuation assumptions.

A defined reference for comparison matched to the relevant asset class, period or objective, rather than any convenient favorable number.

A traceable record of relevant sources, actions and corrections, without assuming that recorded information is automatically complete or true.