FAQs
Initial Registration FAQs
Do I need to register if I am located elsewhere but my clients reside in Alberta?
What factors determine the principal regulator for a firm and an individual?
- For a firm, the firm’s head office is located.
- For an individual, the individual’s working office is located.
How long does it take to assess an initial registration application?
- For a firm, a factual, truthful and complete Form 33-109F6 including comprehensive supporting documents mentioned in this form such as the business plan, policies and procedures manual, audited financial statements, etc.
- For an individual, a factual, truthful and complete Form 33-109F4 including fulsome disclosure and explanations of key factors (integrity, proficiency and solvency) that impact an individual’s suitability for registration.
What are the fees for registration?
Is cryptocurrency/token/stablecoin a security?
As a regulator, the ASC cannot provide legal advice, including a determination about whether something is a security. Refer to our web page on Crypto Asset Trading Platforms for more information about how securities law may apply to cryptocurrencies. If you are still unsure about the status of a potential security, consult a securities lawyer.
My firm has an innovative product offering or business model. Do I need to register the same way as other firms?
Firms offering an innovative product need to register if they are conducting registerable activity. See Exemptions and Relief if your firm will need to seek exemptive relief. The ASC Private Markets and Innovation Team and the Canadian Securities Administrators (CSA) are working on ways to support fintech businesses seeking to offer innovative products, services and applications in Canada. The ASC is working on this as part of the CSA Financial Innovation Hub, an initiative designed to foster innovation in the Alberta markets. Stay tuned for updates.
Do I have to register my firm if we only broker physical commodity contracts?
It depends. ASC Blanket Order 91-507 Over-the-Counter Trades in Derivatives (BO 91-507) provides an exemption to dealer registration for over-the-counter derivatives if each counterparty is a qualified party as defined under BO 91-507 or the trade is in a physical commodity contract. If the listed criteria are met, the firm will qualify for the exemption and does not have to be registered.
Do I have to register individuals in my firm who broker physical trades only?
It depends. The ASC’s mandate covers the regulation of financial contracts and the financially settled trades brokered by restricted dealers. In practice, most firms would have a single trade entry system accessible by all brokers regardless of whether they trade physical contracts only, financial contracts only, or both. In such cases, the ASC would require that all brokers be registered as dealing representatives or the trade entry system configured in such a way that individuals brokering only physical trades have restricted access to trade financial products.
Ongoing registration FAQs
Are compliance review reports for my firm made public?
No. The results of compliance reviews are shared with firm personnel such as the chief compliance officer responsible for implementing a remediation plan and ensuring the firm is brought into compliance with securities law requirements.
Are there restrictions on advertising once my business is registered?
Yes. Registered firms and individuals must comply with the marketing restrictions set out in applicable securities law. The exact restrictions will vary based on the firm’s registration category. In general, marketing material must be true, clear, and not misleading.
My firm is converting its subordinated loan into preferred shares. Do we need to notify the ASC 10 days before?
Yes. Appendix B Subordination Agreement of NI 31-103 states that “any loan or advance or posting of security for a loan or advance by the Registered Firm to the Lender, shall be deemed to be a payment on account of the Loan.”
What accounting standard should be used for filing financial statements?
Per sections 12.10 and 12.11 of 31-103CP, registered firms must deliver annual financial statements and interim financial statements that comply with NI 52-107. Part 3 of NI 52-107 states that the financial statements must be prepared in accordance with Canadian GAAP applicable to publicly accountable enterprises, which is IFRS as incorporated into the Handbook, except that any investments in subsidiaries, jointly controlled entities and associates must be accounted for as specified for separate financial statements in IAS 27.
How often will my firm be reviewed and how can I prepare for a review?
The ASC uses a risk-based approach when prioritizing compliance reviews of registered firms rather than a fixed schedule. Registered firms will be notified that they are being reviewed with an announcement letter and an appointment of an examiner, delivered by ASC staff. To stay prepared for compliance reviews, registered firms should ensure that their compliance system is being maintained and applied effectively in accordance with NI 31-103.
If you have any questions about registration, contact registration@asc.ca.