On April 28, 2016, the Canadian Securities Administrators
("CSA") published CSA Consultation Paper 33-404 ("CP
33-404") which proposes for discussion regulatory action to
hold securities advisors, dealers and representatives
("Advisors") to a higher standard in dealings with their
The following areas of Advisor conduct were found to be
Conflicts of interest, including
firms and Advisers must have a reasonable basis for concluding
the client fully understands the implications and consequences of
responding to material conflicts in a way that prioritizes the
interests of clients ahead of the interests of the firm and
advisor, including guidance on impact of incentives
Know Your Client, including that the KYC process results in a
thorough understanding of the client, including the client's
Know Your Product, including understanding the impact of all
fees, costs and charges connected to the products they
Determining investment suitability, including
taking into account product costs and investment
considering the client's target rate of return and whether
the proposed investment meets the client's needs
considering not only the suitability of a trade but also of the
portfolio on an ongoing basis
Relationship Disclosure, including
disclosure of the actual nature of the client-advisor
disclosure by firms in restricted registration categories or
that only offer proprietary products that there may be securities
products they don't sell that may be more suitable
Proficiency, including requiring
increased proficiency on product costs and investment
strategies that can impact investment outcomes
Misleading Titles of Advisors; some Advisor titles exaggerate
their proficiency or the services they actually provide.
CP 33-404 attempts to establish clear, practical, and
enforceable requirements for Brokers to follow and for regulators
and courts to enforce.
Comments must be submitted in writing by August 26, 2016 to any
member Securities Commission of the CSA.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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