Brokers aka " advisors" are put under Strict supervision when they have been found by regulators to have broken the rules, thereby putting clients at risk. If after some defined period ,it is concluded that they can be allowed to work with clients with just the normal level of supervision, they are removed from the strict supervision status. For major breaches of the rules, brokers can lose their registration and not be employed by any member firm as determined by the applicable Self- regulator ( MFDA or IIROC). If your dealer Rep is under Strict Supervision be ultra cautious with any recommendations made.
The Eight
Traditional Elements of Strict Supervision are:
i.
All orders, both
buy and sell, would be initialed by an assigned supervisor or a senior officer
before entry;
ii.
ii. All client accounts would be reviewed on a daily and
monthly basis based on the standards established by the Minimum Industry
Standards for Account Supervision;
iii.
A review of trading activity in the Respondents own
accounts would be conducted on a daily basis;
iv.
No transactions
would be made in any of the respondents
new client accounts until full and correct documentation was in place;
v.
All documents signed by the Respondents clients would be
reviewed by the Branch Manager and compared to the signature on the client’s
photo ID. Evidence of such review would also be retained by the Branch Manager;
vi.
For all documents signed by one of the Respondents
clients, a Branch Manager would send a copy of the document back to the client
with a request for them to inform Dealer of any discrepancies.
vii.
Any of the respondents client complaints received would
be reported to the Registration Department of IIROC;
viii.
Any of the Respondent's client account generating in
excess of $1,500 per month in commissions would be reviewed;
Ohers
can be added to this traditional list of eight depending on the circumstances
and tailored to the specific situation such as, but not limited to:
ix.
There would be no handling by the Respondent of any of
his clients’ securities and no payment by the respondent or issuance of cheques by the respondent to
his clients without management approval;
x.
x. Any transfer of securities between the respondent's
client accounts would be authorized by the client and reviewed and approved by
an assigned supervisor or a senior officer of the Dealer Member
You can check advisor registration at https://www.securities-administrators.ca/nrs/nrsearch.aspx?ID=850
You can check advisor registration at https://www.securities-administrators.ca/nrs/nrsearch.aspx?ID=850
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=B1E7DAD74A5D4FB0B07AAE141CE08A25&Language=en
see page 6 of 9 for this list Thanks to D. MacFadden .
