4 key things to know about registration

What dealing with a registered adviser or dealer means (and what it doesn’t):

1. Skills – Registration tells you that the individual has met the proficiency requirements for their category of registration and the registration category should correlate with the products and services a firm or individual can offer. They need the right skills and knowledge and also need to meet the right standards to sell products and provide advice.
2. Ethical business practices – The integrity of individual representatives is one of the key components in assessing fitness for registration.
3. Suitability – Registered advisers and dealers have an obligation to recommend investments that are suitable for you.
4. It’s not everything – Even if a firm or individual is registered, it doesn’t mean they will always give you good advice, act ethically or stay in business. Registration also doesn’t guarantee that you’ll make money or that you won’t lose money.

Caution

Being registered is not a guarantee that the person you deal with will always give you good advice or act ethically. Carefully choose who you investInvest To use money for the purpose of making more money by making an investment. Often…+ read full definition with, and ask these questions.

How to check registration and background

Before you hire an advisor or dealer use these search tools to find out if a firm or individual is registered and check their background.

• Check before you invest. The National Registration Search contains the names of all registrants (individuals and firms) in Canada.
• The Registrant Search tool will show you who is registered with the Ontario Securities CommissionOntario Securities Commission An independent Crown corporation that is responsible for regulating the capital markets in Ontario. Its…+ read full definition (OSCOSC See Ontario Securities Commission.+ read full definition), what they are registered for and if there are any terms and conditions on their registration.
• Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition dealers, mutual fundMutual fund An investment that pools money from many people and invests it in a mix of…+ read full definition dealers and trading activity on Canada’s debtDebt Money that you have borrowed. You must repay the loan, with interest, by a set…+ read full definition and equityEquity Two meanings: 1. The part of investment you have paid for in cash. Example: you…+ read full definition marketplaces. Know your advisor: Advisor Report has information on investment advisors regulated by CIRO and you can also Search Disciplinary Cases for details about enforcement action.

Use this workbook from the Canadian Securities Administrators (CSA)Canadian Securities Administrators (CSA) The Canadian Securities Administrators (CSA) is an umbrella organization of Canada’s provincial and territorial securities…+ read full definition to record information while choosing a financial advisor.

Has your adviser or dealer been in trouble?

Check the Canadian Securities Administrator’s disciplined persons list to see if someone has been disciplined and is subject to sanctions.

Remember: Generally, anyone selling securities, offering investment advice or acting as an investment fund managerFund manager A fund manager is responsible for investing the pool of money that people have put…+ read full definition must be registered with their provincial securities regulatorSecurities regulator A government agency that enforces the securities act in jurisdiction it has authority over. This…+ read full definition. Check registration before you invest.