Category: FAQs
Apr 28, 2023 | FAQs, Regulatory Compliance
Question: Can a “Term Sheet” be an Offering Memorandum? Answer: In some circumstances, yes. In Ontario, an offering memorandum (an OM) can be any document, or a collection of documents, that describes the “business and affairs” of an issuer that was prepared for the...
May 31, 2022 | Client-Focused Reforms (CFRs), FAQs, Regulatory Compliance
Since the enhancements introduced as part of the Client Focused Reforms (CFR) came into force in 2021, the Canadian Securities Administrators (CSA) has been providing the industry with additional guidance by publishing an FAQ with a few updated responses to questions...
Apr 29, 2022 | FAQs, Regulatory Compliance
Answer: Most registered firms are aware of the obligation to maintain records to demonstrate compliance with securities laws and anti-money laundering requirements and have policies and procedures to address these requirements. For example, National Instrument 31-103...
Apr 29, 2022 | Client-Focused Reforms (CFRs), FAQs, Investment Funds, Regulatory Compliance
You just got a formal request from the Ontario Securities Commission (OSC) that they would like to come by for a visit, accompanied by a request for all the inner workings of your firm, what do you do?! First, respond. Second, get ready, any regulatory review will be...
Mar 31, 2022 | Client-Focused Reforms (CFRs), FAQs, Investment Funds, Regulatory Compliance
Answer: As set out in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (31-103), as a registrant you are now required to follow all the new KYC and suitability requirements. Section 13.3(2) of NI 31-103 provides,...
Feb 28, 2022 | FAQs, Investment Funds, Regulatory Compliance
Answer: This question arises because OSC Staff have stated their position that a registered firm that plans to establish, manage, advise and/or trade in securities of investment funds with portfolios of cryptocurrencies or cryptocurrency assets are required to report...
Feb 28, 2022 | FAQs, Regulatory Compliance
Answer: Registered firms sometimes ask us if they can provide account statements and reports on a household basis to families where multiple family members are clients of the firm. According to regulatory guidance, the answer is a qualified yes, but… registered firms...
Feb 28, 2022 | Client-Focused Reforms (CFRs), FAQs
Answer: The regulatory guidance on this topic is similar to the answer above; registered firms can perform a suitability determination at a household level, but only if they also separately make an account-level suitability determination. In other words, the...
Sep 30, 2021 | Client-Focused Reforms (CFRs), FAQs
Answer: While a firm is not required to approve securities that are held in an account as a result of a client-directed trade if they do not otherwise make those securities available to clients, the firm is required to: (a) inform the client of the basis for the...
Aug 31, 2021 | Client-Focused Reforms (CFRs), FAQs
Answer: While some are breathing a (small) sigh of relief as the deadline for complying with the conflict-of-interest provisions of the Client Focused Reforms has passed, it is time to consider how prepared your firm is for the next phase of the CFR amendments, coming...
Jun 30, 2021 | FAQs, Investment Funds, Regulatory Compliance
Answer: Canadian securities laws require that a registered firm manage material conflicts of interest in the best interests of its clients. The Canadian Securities Administrators have provided guidance that paid referral arrangements are an inherent conflict of...
Jun 30, 2021 | FAQs, Regulatory Compliance
Answer: GIPS standards are a recognized standard for calculating and presenting investment performance around the world. While Canadian securities laws do not require a firm to comply with GIPS standards, a firm may wish to do so in order, for example, to demonstrate...
Jun 30, 2021 | Corporate Finance, FAQs, Mortgage and Real Estate Investment Vehicles, Regulatory Compliance
Answer: As of July 1, 2021, the OSC will have regulatory oversight over the distribution of NQSMIs to persons that are not permitted clients. Firms distributing NQSMIs to investors that are not permitted clients will need to rely on another available prospectus...
May 31, 2021 | Client-Focused Reforms (CFRs), Corporate Finance, FAQs, Regulatory Compliance
Answer: Registrants are often asked by their clients, as trusted advisors, to act as their trustee under family trusts, executors under their will or as powers of attorney. The potential issue with accepting any of these roles for a registrant is that they may present...
May 31, 2021 | Anti-Money Laundering, FAQs, Regulatory Compliance
Answer: While it may be considered industry standard to conduct ongoing monitoring annually, FINTRAC allows registrants to determine the frequency with which a registrant will monitor its clients’ accounts. Accordingly, every firm should have policies and procedures...
