The CSF’s activities and the practice of its members are governed by laws and regulations enacted by the federal and provincial governments and by the CSF itself. Compliance with the rules of ethics requires vigilance. Although it may seem to be in the interests of a client--whether to help him out or save him time--a representative must not disregard the rules of ethics, even if he is acting in good faith and has the best intentions. If these rules are breached, the syndic of the CSF may launch an inquiry, after which the professional may be required to appear before the Disciplinary Committee and may be subject to penalties. This section contains details of all legislation applicable to professionals in the financial services industry, based on the sector in which they practise, and all legislation applicable to the CSF, as well as links to the legislation.
CSF members who work in the insurance of persons sector consist of representatives in insurance of persons and group insurance representatives. They are governed by the Act respecting the distribution of financial products and services (Distribution Act). Financial planners are also governed by this statute and are also considered to be representatives, just like insurance representatives.
Several regulations apply to the insurance and financial planning sectors:
- Code of ethics of the Chambre de la sécurité financière, which sets out ethical obligations. These are divided into several sections, namely, duties and obligations towards the public, duties and obligations towards clients, duties and obligations towards other representatives, firms, independent partnerships, insurers and financial institutions, duties and obligations towards insurers and duties and obligations towards the profession;
- Regulation respecting the issuance and renewal of representatives’ certificates, which sets out the conditions under which the Autorité des marchés financiers will issue or renew a certificate;
- Regulation respecting the pursuit of activities as a representative, which defines the practice of all representatives governed by the Distribution Act
- Regulation of the Chambre de la sécurité financière respecting compulsory professional development, which set outs professional development requirements;
- Compulsory professional development summary;
- Regulation respecting the compulsory professional development of financial planners;
- Regulation respecting information to be provided to consumers, which sets out the information to be disclosed to clients when carrying out certain transactions;
- Regulation governing the titles of registered life underwriter and chartered life underwriter (in French only).
In addition, certain regulations may apply to a representative, depending on the manner in which he pursues his activities:
- Regulation respecting the registration of firms, representatives and independent partnerships;
- Regulation respecting firms, independent representatives and independent partnerships, which sets out a series of rules to be followed by firms, independent partnerships and independent representatives;
- Regulation respecting the keeping and preservation of books and registers, which sets out a series of rules for the functioning and keeping of certain books and registers by firms, independent partnerships and independent representatives.
For more information on the framework governing financial planning, consult the Mémoire de la Chambre de la sécurité financière relativement à la consultation de l’Office des professions du Québec sur l’encadrement des planificateurs financiers.
Representatives who are members of the CSF and work in the securities industry consist of mutual fund dealer representatives and scholarship plan dealer representatives.
Representatives in the securities sector, who were previously governed by the Act respecting the distribution of financial products and services, are now governed by the Securities Act following the enactment of An act to amend the Securities Act and other legislative provisions (S.Q. 2009, c. 25). However, they are still subject to the Regulation respecting the rules of ethics in the securities sector and are members of the CSF. In fact, certain portions of the Act respecting the distribution of financial products and services that deal with the Fonds d’indemnisation des services financiers and those relating to the Chambre de la sécurité financière, including its Disciplinary Committee, continue to apply to the activities of mutual fund dealer representatives and scholarship plan dealer representatives.
The Securities Act is the umbrella act for the securities industry and has as its objectives the protection of investors and the efficiency of the markets. It contains rules governing public offerings, disclosure obligations regarding outstanding securities as well as provisions governing the registration of persons who wish to pursue securities-related activities (Title V of the Securities Act). It is therefore this statute which requires a person to register in order to act as a mutual fund dealer representative or scholarship plan dealer representative.
The Securities Act also provides that the Autorité des marchés financiers has the power to cancel, suspend or impose conditions on a registration, such as when a representative declares bankruptcy or when the CSF’s Disciplinary Committee has cancelled or suspended a representative’s right to practise.
It also contains general provisions governing the conduct of representatives in the pursuit of their professional activities.
Art. 160 – All persons registered as dealers, advisers or representatives are required to deal fairly, honestly, loyally and in good faith with their clients.
Art. 160.1 – In their dealings with clients and in the execution of the mandates entrusted to them by their clients, all persons registered as dealers, advisers or representatives are required to act with all the care that may be expected of a knowledgeable professional acting in the same circumstances.
Several regulations apply to the securities sector:
- Securities Regulation, which, among other things, deals with the fees payable for certain activities related to securities. This regulation also prescribes the obligation for a representative to have professional liability insurance;
- Regulation respecting the rules of ethics in the securities sector. Pursuant to section 135 of An act to amend the Securities Act and other legislative provisions, sections 2 to 20 of this regulation apply until a regulation determines rules equivalent to those prescribed in these sections with respect to mutual fund dealer representatives and scholarship plan dealer representatives.
- Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations, which came into force on September 28, 2009. It applies to all classes of persons, whether they are individuals or firms, who must register in order to practice in the securities sector. It seeks to harmonize and streamline registration requirements across the provinces and territories of Canada. Although the regulation applies fully to the activities of scholarship plan dealer representatives, it contains certain exceptions for the activities of Québec mutual fund dealer representatives who comply with Québec’s regulatory requirements.
- Regulation 81-101 respecting Mutual Fund Prospectus Disclosure;
- Regulation 81-102 respecting Mutual Funds;
- Regulation 81-105 respecting Mutual Fund Sales Practices.
- Act respecting the regulation of the financial sector
- Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17);
- Regulation respecting titles similar to the title of financial planner, which prescribes titles that cannot be used by anyone;
- Regulation respecting the eligibility of a claim submitted to the Fonds d’indemnisation des services financiers.
- Règlement intérieur de la Chambre de la sécurité financière (Avis d'entrée en vigueur)
- Règlement sur la cotisation de la Chambre de la sécurité financière
- Avis d'indexation - Cotisation annuelle de la Chambre de la sécurité financière
- Règlement sur les frais exigibles de la Chambre de la sécurité financière
- Tableau des frais exigibles de la Chambre de la sécurité financière 2021
- Tableau des frais exigibles de la Chambre de la sécurité financière 2022
- Regulation of the Chambre de la sécurité financière respecting compulsory professional development
- Règlement sur le comité de discipline de la Chambre de la sécurité financière
- Règlement sur le traitement, les honoraires et les autres rémunérations des membres du comité de discipline de la Chambre de la sécurité financière
- Règlement sur l'éthique et la déontologie des administrateurs de la Chambre de la sécurité financière
- Politique relative aux allocations de présence et remboursement des dépenses des membres des comités formés par le conseil d’administration
- Politique relative aux allocations de présence et remboursement des dépenses des membres du conseil d’administration
- Règlement sur la déontologie du personnel de la Chambre de la sécurité financière
- Frais remboursables
- Politique sur les dépôts d’argent, paiements et comptes bancaires
- Politique sur les placements
- Politique sur les indemnités payables aux membres du comité de discipline
- Politique sur l'acquisition de biens et services
- Policy on compulsory professional Development activities