Canadian securities regulators caution industry about false and misleading registration applications and outline changes to trading supervision reports

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July 13, 2017

Toronto - The Canadian Securities Administrators (CSA) today published CSA Staff Notice 33-320 The Requirement for True and Complete Applications for Registration to caution firms and individuals about the potential consequences of submitting false or misleading applications for registration.

Each year, CSA staff receive many applications for registration that omit relevant information or contain information that is vague or untrue. 

"The CSA will continue to hold individuals and firms accountable for false or misleading applications," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. "Applications for registration must be completed with truth and candour, and we expect firms to have robust policies and procedures in place to ensure this is the case for any applications they sponsor."   

Applications for registration are made through a prescribed form that requires the applicant to disclose information that CSA staff use to assess fitness for registration. This information includes, but is not limited to, information about current and previous employment, as well as financial and criminal disclosure.

After an individual becomes registered, if any of the information provided in their initial application changes, they must update their information using the prescribed form and within the time periods provided for in National Instrument 33-109 Registration Information.

If an individual discloses false or misleading information to CSA staff, the matter may result in a denial of registration or in regulatory action being taken against a registrant. False or misleading statements made during the application process may also constitute a provincial or criminal offence. CSA staff may also take regulatory action against anyone complicit in an applicant's delivery of a false or misleading application, including the sponsoring firm. 

The CSA also published today CSA Staff Notice 31-349 Change to Standard Form Reports for Close Supervision and Strict Supervision Terms and Conditions, which relates to dealing representatives that require enhanced supervision on their trading activities. The notice describes close and strict supervision and outlines changes to standard form reports.

The notices can be found on CSA members' websites.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For more information: 

Kristen Rose
Ontario Securities Commission
416-593-2336

Hilary McMeekin
Alberta Securities Commission
403-592-8186

Alison Walker
British Columbia Securities Commission
604-899-6713

Sylvain Théberge
Autorité des marchés financiers
514-940-2176 

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660


Andrew Nicholson
Financial and Consumer Services 
Commission, New Brunswick
506-658-3021

David Harrison
Nova Scotia Securities Commission 
902-424-8586


Steve Dowling
Government of Prince Edward Island,
Superintendent of Securities
902-368-6288
John O'Brien
Office of the Superintendent of Securities 
Newfoundland and Labrador
709-729-4909

Rhonda Horte
Office of the Yukon Superintendent of 
Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6591

Tom Hall
Office of the Superintendent of Securities
Northwest Territories
867-767-9305
Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160

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