Final answer:
Mary Moneypenny is not legally obligated to cancel the order for IPO shares as the client's change of mind due to perceived optimistic forecasts is not ground for cancellation under the Right of Rescission, which is typically invoked in cases of misrepresentation. The Right of Withdrawal doesn't apply post-transaction completion.
Step-by-step explanation:
Mary Moneypenny, who is an Investment Advisor for a Canadian Investment Dealer firm, is faced with a legal question regarding an order cancellation for shares from an IPO she is underwriting. If a client requests a cancellation of their order after purchasing shares, the advisor needs to consider the securities regulation in place. In Canada, investors generally have certain rights related to new issues, such as a statutory right of rescission, which allows investors to withdraw their acceptance of an offer by notifying the issuer within a certain period of time if the prospectus contains a misrepresentation.
However, since the provided scenario does not mention any misrepresentation, and the client wishes to cancel based on a belief that forecasts are too optimistic, which is a subjective opinion, Ms. Moneypenny is not legally obligated to cancel the order based on the Right of Rescission as it does not apply in this context. The Right of Withdrawal typically does not apply once the transaction is completed. It is important to note that specific terms and timeframe for cancelling an IPO order may vary. Therefore, it is best for Ms. Moneypenny to refer to her firm's policies and the applicable securities laws before proceeding. The correct answer here, based on the given information, would be that she is under no legal obligation to cancel the order.