Investment advisors, please be honest, complete and correct in your registrations.
That was effectively the reminder that Canadian Securities Administrators issued to registrants on Thursday in CSA Staff Notice 33-320: The Requirement for True and Complete Applications for Registration.
After years of receiving false and misleading application information, the group representing provincial securities regulators says its staff continue to receive “many applications for registration that omit relevant information or contain information that is vague or untrue.”
CSA is warning advisors that it is is taking the issue seriously and will hold individuals and firms accountable for false or misleading applications. It says false or misleading statements can constitute a provincial or criminal offence.
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“Applications for registration must be completed with truth and candour, and we expect firms to have robust policies and procedures in place to ensure this is the case for any applications they sponsor,” Louis Morisset, CSA chair, says in a statement.
Applications for registration are made through a prescribed form that requires the applicant to disclose information that helps CSA assess the applicant. The form includes information such as current and previous employment and financial and criminal disclosure.
People whose information changes after registration are required to update their information according to the time windows outlined in National Instrument 33-109: Registration Information.
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“If an individual discloses false or misleading information to CSA staff, the matter may result in a denial of registration or in regulatory action being taken against a registrant,” CSA says in a statement Thursday. “False or misleading statements made during the application process may also constitute a provincial or criminal offence. CSA staff may also take regulatory action against anyone complicit in an applicant’s delivery of a false or misleading application, including the sponsoring firm.”
Also Thursday, CSA published CSA Staff Notice 31-349: Change to Standard Form Reports for Close Supervision and Strict Supervision Terms and Conditions, for dealing representatives who require enhanced supervision on their trading activities. The notice describes close and strict supervision and outlines changes to standard form reports.
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