Firms registered with the Ontario Securities Commission (OSC) are subject to many ongoing requirements, such as:
- maintaining an effective compliance system
- meeting certain business conduct requirements
- meeting financial reporting, working capital, insurance, and bonding requirements
- notifying the OSC of updates to registration information
The OSC conducts compliance reviews to monitor whether firms are complying with securities law.
In addition to securities law, registered firms and individuals are required to comply with the Criminal Code of Canada and all other legal requirements relevant to the operation of their business, such as money laundering prevention, corporation regulations, partnership and trust laws, and privacy rights.
- All registered firms and international dealers and international advisers are required to comply with federal laws relating to terrorist financing and Canadian sanctions, and to file a report to this effect with their principal regulator. For more information, see CSA Staff Notice 31-352 Monthly Suppression of Terrorism and Canadian Sanctions Reporting Obligations as well as Monthly Suppression of Terrorism and Canadian Sanctions Reporting Requirements and online form.
Investment dealers and mutual fund dealers
A firm registered as an investment dealer or a mutual fund dealer is generally required to be a member of a self-regulatory organization (SRO). In general, a firm carrying on more than one type of activity requiring registration must register in each applicable category. The firm will have to comply with the requirements of all categories in which it is registered.
A firm that is a member of an SRO and its dealing representatives are exempt from certain requirements as per National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103). This is because the SRO has its own rules for these matters.
If a firm is registered in multiple categories, it must meet the most stringent of the proficiency requirements for the firm’s various categories of registration.
The New Self-Regulatory Organization of Canada (New SRO), works with the OSC to oversee investment dealers and mutual fund dealers. Refer to the New SRO website for more information about the additional rules that apply to members. The New SRO was formed through the amalgamation of two predecessor SROs, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
A firm may be both an investment dealer and mutual fund dealer (dual registered firm) if they are a member of the New SRO. For further information, please see Registration Guide for New SRO Dual Registered Firms.