OMVIC Regulations for Corporations

OMVIC may request a court to appoint a "receiver and manager" to oversee a dealership in serious situations, like when the dealership is facing closure or OMVIC is considering revoking its registration.

OMVIC can issue an order to freeze a dealer's assets or trust funds in critical situations, such as after a search warrant or criminal investigation.

OMVIC, along with its employees, is obligated to keep information confidential and not share it with anyone.

OMVIC maintains a public register of dealers and salespeople, providing information such as registration status, disciplinary actions, and advertising orders.

The Motor Vehicle Dealers Act (MVDA) governs the retail automotive industry in Ontario.

Information about a dealership, salesperson, or individual associated with a dealership, that OMVIC deems necessary to protect the public.

OMVIC may take action against a dealer or salesperson, such as refusing, revoking, or suspending their registration, based on their conduct.

OMVIC may issue orders related to advertising or ethical violations, ensuring compliance with the Code of Ethics.

The legal requirement for car dealerships in Ontario to ensure their salespeople are registered with the Ontario Motor Vehicle Industry Council (OMVIC).

A document that proves a salesperson is registered with OMVIC, allowing them to legally sell cars in Ontario.

A reason OMVIC may deny a corporation's registration is if they believe the corporation's officers/directors have a history of dishonest practices or acting illegally.

OMVIC can deny corporation registration if they believe it won't manage its finances responsibly based on its own financial position or that of its officers/directors.

To maintain registration, car dealerships in Ontario must keep a copy of their salesperson's certificates of registration on file.

A person appointed by a dealership to manage its OMVIC registration, fees, and notifications.

The DA can manage the online account to file renewal applications, pay fees, review registration renewal requests, and access transaction history.

The DA can subscribe to notifications for both the dealer and salespeople about application status, registration expiration, and other important events.

The DA is responsible for managing the dealership's registration renewal process, including submitting the application and paying fees.

The DA can view and manage registration renewal requests submitted by salespeople within the dealership.

The DA can review the history of transactions and renewal requests for the dealership.

A salesperson doesn't need to register for OMVIC's online services; the DA will still receive notifications about the salesperson's registration.

The DA can access and manage the registration information of the owners, partners, officers, and directors of the dealership.

A type of dealer that can buy, sell, or trade used vehicles. They are often the most common type of car dealership.

A subclass of General Dealer that specializes in buying, selling, or trading only used vehicles.

A dealer who can handle both new and used vehicles, making them the most versatile type.

A dealer who facilitates the buying, selling, or trading of vehicles for other people, without owning or taking possession.

A dealer who specializes in buying vehicles from other dealerships, and selling them to other dealerships.

A dealer who buys vehicles specifically to export them outside of Ontario.

A dealer who cannot be associated with a General Dealer, and can't own or take possession of vehicles. They typically focus on lease agreements.

A dealer who is registered outside of Ontario and buys vehicles from exempt wholesale auctions to export them to their home province or country.

A customer buying a vehicle for personal use, not for business purposes. They are not a corporation.

A legal entity formed by laws, separate from its owners. It can buy and sell cars.

An unregistered dealer who pretends to be a private seller. They may sell unsafe cars.

Someone working for themselves who provides services under a contract. They can be hired to sell cars.

A secured agreement where you use a vehicle, but the owner keeps the title. You pay monthly.

People in positions of authority like presidents, partners, and managers of a business, including car dealerships.

A person running a business on their own, without forming a corporation.

OMVIC requires dealers and salespeople to notify them within 5 days if any of their registration information changes.

A separate bank account used by General Dealers to hold money received from buyers and consignment sales. The dealer must pay the consignor the agreed-upon amount from this account before taking any fee for the sale.

A process to verify that the dealer's transaction records match the bank statement for the trust account. The dealer must reconcile the account within 30 days of receiving the monthly statement.

An order issued by Ontario Motor Vehicle Industry Council (OMVIC) to freeze a dealer's assets or trust funds in extreme situations, such as when customer protection is crucial, like in a criminal investigation.

Dealers should securely store customer personal information, ideally in a locked office, and mark any sensitive information "do not copy". This information should be collected at the end of each employee's shift. Electronic data must also have security measures.

In consignment deals, the dealer must first pay the consignor the agreed-upon amount before deducting their fees. The dealer must deposit all consignment funds directly into the trust account.

Dealers must have a trust account to hold any buyer deposit over $10,000.

If a salesperson believes their situation is an exception to the rules regarding customer information, they must discuss it with their employer and seek legal advice before using anyone's information.

New employees must acknowledge and initial a clause indicating their awareness of the dealer's policies regarding customer information and procedures.