Aim for Compliance and High Quality Professional Practice!Aim for Compliance and High Quality Professional Practice!

​This summary does not constitute a legal opinion. The information it contains may not reflect the current state of the law.

​A firm is punished for allowing one of its representatives to pursue brokerage activities despite his certificate not being in force; a firm manager is found guilty of not having established a procedure to ensure that the firm’s brokers are dealing with policy renewals correctly; a manager is found liable for leaving a client uninsured due to the negligence of a “547” employee. These are all examples of failure to comply with an obligation that the Act respecting the distribution of financial products and services and the Codes of ethics require of both firms and managers.

​The Act stipulates that a firm and its executive officers must oversee the conduct of the firm’s representatives and ensure that the representatives, as well as all other employees, comply with the Act and its regulations. Through their respective Codes of ethics, certified representatives must also comply with this obligation when dealing with their mandataries and employees.

​The purpose of these sections is to make managers accountable for how their firm conducts business. Although, as professionals, certified representatives are responsible for the acts they carry out, the firm and its managers are responsible for instituting the necessary measures to ensure that these acts are in compliance.

8/11/2014 8:18:17 PM