Canadian Securities Course (CSC) Level 2 Practice Exam

The role of the advisor in Exchange Traded and Mutual Fund Wraps primarily involves overseeing the investment strategy, which often includes discretionary management. In this context, discretionary management means that the advisor has the authority to make investment decisions on behalf of the client without prior consent for each transaction. This allows the advisor to respond promptly to market changes and to manage the portfolio efficiently, optimizing the investment outcomes for the client. While it’s true that financial planning is an essential aspect of an advisor's overall duties, in the specific context of wraps, the focus is on the management of the bundled investment products. Therefore, overseeing the bundled fee structure is often part of the role but is not the central activity. Similarly, directly managing securities could suggest a more hands-on approach that doesn't fully encompass the broader strategy of discretionary management. In a wrap account, much of the advisor's role is about strategic oversight rather than individual security management.