Which of the following Dealing Representatives has fulfilled their "Know Your Product" obligation?

The "Know Your Product" (KYP) obligation requires a Dealing Representative to understand the products they recommend, including their features, risks, and costs. Rehan demonstrates this by reviewing the hedge fund's features and correctly identifying and explaining a critical characteristic—the lock-up period—to her client. This action ensures the client is aware of the fund's liquidity constraints before investing, which is a core component of fulfilling the KYP duty. The other representatives failed to understand product costs, features, or suitability.

A. Godfried failed to understand the product's cost structure, specifically the redemption fees, which is a clear breach of his KYP obligation.

B. Otev failed to perform the necessary due diligence to understand a product his client inquired about, demonstrating a lack of product knowledge.

D. Tevy failed to match the product's features (PPNs are typically illiquid) with the client's stated need for liquidity, indicating an incomplete understanding of the product.

1. Canadian Securities Administrators (CSA). (2019). Client Focused Reforms: Amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Section 13.2.1, "Know your product". This section mandates that registrants must not buy or sell a security for a client unless they take reasonable steps to understand the security, including its structure, features, risks, and initial and ongoing costs.

2. Mutual Fund Dealers Association of Canada (MFDA). (now part of CIRO). MFDA Policy No. 2 - Know-Your-Product. This policy outlines the minimum standards for Members and Approved Persons to meet their KYP obligations, including understanding product structure, risks, and costs.

3. Investment Funds Institute of Canada (IFIC). (2020). Client Focused Reforms: A Practical Guide for Mutual Fund Dealers. Section on Know Your Product, p. 12. This guide emphasizes the importance of understanding and explaining product features like lock-up periods.