34 Questions
What are the three broad principles of regulation based on the securities acts?
Disclosure of relevant information, registration of securities dealers, and enforcement of securities laws
What is the difference between a National Instrument (NI) and a Multilateral Instrument (MI)?
NI is adopted by all CSA jurisdictions, while MI is adopted by one or more CSA jurisdictions
Who administers the applicable Act in most provinces?
Provincial securities commissions
What type of disclosure is required for the primary distribution of securities?
Filing an approved prospectus with the relevant securities commission
Who must provide the approved prospectus to investors during a primary distribution of securities?
The issuer of the securities
When is a prospectus required for sales of previously issued securities?
When there is significant influence over the company whose shares are being sold
What does registration of securities dealers and advisors allow the Administrators to do?
Impose proficiency requirements upon those applying for or holding registration
What is the mission of the Canadian Securities Administrators (CSA)?
To protect investors from unfair, improper, or fraudulent practices
What does the Alberta Securities Commission regulate?
Securities market in Alberta
What are National Instruments in the context of Canadian securities regulation?
Instruments adopted in all thirteen Canadian provinces and territories
What is the role of the Autorité des marchés financiers (AMF) in Quebec?
To oversee or administer the securities market in Quebec
What legislation has been passed by each province to regulate the primary and secondary distribution of securities?
Securities legislation
Which organization is responsible for investigating and prosecuting securities regulation violations?
The Canadian Securities Administrators (CSA)
Which organization deals with business conduct, financial compliance, and trade conduct compliance in the securities industry?
Investment Industry Regulatory Organization of Canada (IIROC)
Who is responsible for dealing with money laundering and terrorist financing in the securities industry?
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Which organization ensures protection for depositors in the securities industry?
Canada Deposit Insurance Corporation (CDIC)
What is the purpose of the Canadian Investor Protection Fund (CIPF)?
Protecting investors against member insolvency
What is the purpose of the Passport System in Canadian provinces and territories?
To reduce unnecessary duplication in the review of filings made in multiple jurisdictions
Which database includes all mandatory regulatory filings in Canada?
SEDAR
What are the objectives of the North American Securities Administrators Association (NASAA)?
Investor protection, maintaining market integrity, and promoting the enforcement of securities laws
What does the International Organization of Securities Commissions (IOSCO) regulate?
More than 95% of the world’s securities markets
What is the main purpose of the securities acts based on the text?
To ensure disclosure of facts necessary for investors to make informed decisions
What is the difference between a National Instrument (NI) and a Multilateral Instrument (MI) as per the text?
NI is adopted by all CSA jurisdictions, while MI is adopted by only some provinces
How are securities activities regulated within different provinces based on the text?
Through independently established securities commissions within each province
What is the 'spin cycle' in the context of money laundering?
A stage designed to obscure the audit trail and original source of funds
How does the securities industry benefit from a money laundering perspective?
Ease of trading and ability to perform transactions across borders
What is the definition of a shell company according to IIROC RULE 1300.1?
A business without substance or commercial purpose and incorporated to conceal the true beneficial ownership
Why is the securities industry more at risk during the layering stage of money laundering?
Funds can easily change form into entirely different assets
Who is responsible for the supervision and regulation of banks, insurance companies, and trust and loan companies?
The Office of the Superintendent of Financial Institutions (OSFI)
What is required for financial services providers according to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act?
Establishing record keeping and client identification requirements
Who must send a suspicious transaction report to FINTRAC within 30 days when there are reasonable grounds to suspect a money laundering offence?
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
What is required before any transactions are conducted in an account according to the regulations?
Verification of the identity of an individual opening an account
Which institution is responsible for investigating and prosecuting money laundering and terrorist activity financing offences?
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act
What does Subsection (i) not apply to according to the text?
Banks maintaining physical presence in Canada
Test your knowledge of NI 31-103 and NI 81-102, which are of particular relevance to dealer members. Explore disclosure requirements, primary distribution for issuer of securities, and the importance of full, true and plain disclosure in securities regulation.
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