The best interest of the investors must
always come first.
2.
An agency agreement between deposit brokers
and financial institutions must be in place. Deposit brokers
must have established procedures for dealing with the financial
institutions with whom they have signed agreements. These procedures
may be spelled out in the agreement, or by supplementary manual
or memo.
3.
Deposit Brokers must have an agency agreement
with all sub-agents that are conducting business on their behalf.
4.
Deposit Brokers must be appropriately
licensed in the provinces in which they conduct business.
5.
Deposit Brokers may accept only cheques
payable to the financial institution or to the client, stamped
on the reverse and endorsed over to the financial institution
for the purchase of fixed term deposits. (For exceptions, refer
to #6)
6.
Deposit Brokers may use a trust account
provided they have received authorization from the provincial
securities commission or any other applicable regulatory body.
In these cases cheques could be payable to the Deposit Broker
in trust.
7.
Financial Institutions should set up a
direct deposit account (where possible) and investments must
commence on the day the funds are received by the financial
institution and no later than the following business day (except
in the case of postdated cheques).
8.
An investment confirmation must be given
tot he investor on the day of investment from the deposit broker
(generic form of GIC's is permissible) full disclosure of the
terms and conditions of the investment must be made to the investor
at the time of investment and must be clearly marked on the
investment receipt.
9.
Financial Institutions send a confirmation/certificate
without delay to the Deposit Broker and the Deposit Broker confirms
and forwards on to the investor. The investor can expect official
confirmation within four weeks. In some cases financial institutions
send confirmations directly to the investor with a copy to the
Deposit Broker.
10.
The investor must be notified 10 days
prior to the investment maturity date either by the Deposit
Broker or the financial institution.
11.
Advertising and calculation of interest
rates must conform to regulatory requirements and not mislead
the public.
12.
Training and educational standards for
persons selling investments must be professional and thorough.
