CSC Chapter 3

A method of dispute resolution in which an
independent arbitrator is chosen to assist
aggrieved parties recover damages.

The body that administers the regulatory
framework surrounding Québec’s financial
sector: securities sector, the distribution of
financial products and services sector, the
financial institutions sector and the
compensation sector.

The real (underlying) owner of an account,
securities or other assets. An investor may
own shares which are registered in the name
of an investment dealer, trustee or bank to
facilitate transfer or to preserve anonymity,
but the investor would be the beneficial
owner.

A federal Crown Corporation providing
deposit insurance against loss (up to
$100,000 per depositor) when a member
institution fails.

A fund that protects investors against the
insolvency of any member fi rm. It is
financed by IIROC and the exchanges
(except ICE Futures Canada) who are
collectively referred to as Sponsoring
Self-Regulatory Organizations (SSROs)

The CSA is a forum for the 13 securities
regulators of Canada’s provinces and
territories to co-ordinate and harmonize the
regulation of the Canadian capital markets.

Information sent to shareholders by the
directors of a company that are the target
of a takeover bid. A recommendation to
accept or reject the bid, and reasons for this
recommendation, must be included.

The responsibility of an investment advisor,
mutual fund salesperson or financial
planner to always put the client’s interests
first. The fiduciary is in a position of trust
and must act accordingly.

All directors and senior officers of a
corporation and those who may also be
presumed to have access to nonpublic or
inside information concerning the company;
also anyone owning more than 10% of the
voting shares in a corporation. Insiders are
prohibited from trading on this information.

An individual licensed to transact in the full
range of securities. IAs must be registered in
by the securities commission of the province
in which he or she works. The term refers
to employees of SRO member firms only.
Also known as a Registrant or Registered
Representative (RR).

Applicants not giving any advice to clients may choose to be registered as investment representatives (IRs). The proficiency requirements for IRs are similar to those for IAs, with theexception of the length of the training period (30 days as opposed to 90 days) and the 30-month
requirement

Provides protection for eligible
customers of insolvent MFDA member firms. Each claim is considered according to the policies
adopted by the Board of Directors of the MFDA IPC. The IPC does not cover customers’ losses
that result from changing market values, unsuitable investments, or the default of an issuer of a
mutual fund.

A change in the affairs of a company that is
expected to have a significant effect on the
market value of its securities.

The Canadian Radio-television and
Telecommunications Commission (CRTC)
has established Rules that telemarketers and
organizations that hire telemarketers must
follow. The DNCL Rules prohibit
telemarketers and clients of telemarketers
from calling telephone numbers that have
been registered on the DNCL for more
than 31 days.

The Canadian Securities Administrators
have developed a number of policies that
are applicable across Canada. These
coordinated efforts by the CSA are an
attempt to create a national securities
regulatory framework. Copies of policies
are available from each provincial regulator.