Ongoing requirements

Firms registered with the Ontario Securities Commission (OSC) are subject to many ongoing requirements, such as:

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.

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 Investment Industry Regulatory Organization of Canada (IIROC) works with the OSC to oversee investment dealers. The Mutual Fund Dealers Association of Canada (MFDA) works with the OSC to oversee mutual fund dealers. Refer to these websites for more information about the additional rules that apply to members.