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Regulatory Environment

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. 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 Chambre de la sécurité financière, as well as links to the legislation.

Insurance and financial planning

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:

In addition, certain regulations may apply to a representative, depending on the manner in which he pursues his activities:

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.

Securities

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:

Regulation of the CSF (only available in French)