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In which types of sales practices is my Investment Advisor prohibited from engaging?

Most provincial securities acts prohibit an IA from calling clients at home or impose certain conditions on the right of an advisor to call at or telephone private homes.

Many provinces have residency requirements to trade in that province. Because of the board definition of trading in the provincial securities acts, the filling of an unsolicited order from a client living in another province may constitute trading in that province. This could bring about an action by the administrator in the province in which the advisor is not registered. Furthermore, the administrator of the advisor’s own province could cancel the advisor’s registration or fail to renew it. To establish fraud, it must be proven that the person making the false representation did so deliberately knowing it to be untrue. The following are prohibited representations: Under the provincial securities acts, IAs are subject to penalties for any prohibited sales practices. IAs are also subject to the provisions of the Canadian Criminal Code against fraudulent dealings.