The Ontario Securities Commission has ruled that an out-or-province rep who made a few trades for clients who moved to Ontario before securing his registration must now have conditions attached to his registration.

The OSC upheld the decision of its staff requiring Martin Joseph Bernier to pass either the Canadian Investment Funds Course, or the Conduct and Practices Handbook Course, regardless of whether he’d completed either or both of these courses prior to registration.

On July 2, 2002, Saskatchewan-based Bernier was granted registration by the OSC as a salesperson for Assante Financial Management Ltd. in the categories of mutual fund dealer and limited market dealer. Staff of the commission became aware that Bernier had engaged in the trading of securities in Ontario prior to being registered.

When Bernier applied for renewal of his registration, OSC staff recommended that the application be approved subject him taking the CIF or CPH course. Bernier requested to be heard through a written submission, in which he asked the commission to approve the renewal of his registration without terms and conditions. He noted that he has been licensed with the Saskatchewan Securities Commission since 1989, licensed as an insurance salesperson since 1991, that he is a member of Advocis and The Financial Planning Standards Council of Canada, that has received the Chartered Financial Planner designation and the Registered Financial Planner designation, and has passed the Partners, Directors and Officers examination, the Branch manager’s examination and the Canadian Securities Course.

Bernier submitted that he services three accounts in Ontario, all are long time clients developed in Saskatchewan. He said that when they relocated to Ontario, he continued to service their accounts at their request. He noted that he has not marketed or solicited new business in Ontario and does not intend to. Bernier submitted that when he was made aware of the need for registration by Assante, he agreed to do so; and, that he acted in a professional manner and put his clients and their needs ahead of his own.

OSC staff argued that “failure to obtain registration in Ontario before engaging in registrable activity in the jurisdiction indicates a lack of competence and, possibly, a lack of integrity in that this individual, at best, has shown an inadequate level of understanding of the ethical and regulatory responsibilities of a securities industry professional and, at worst, has chosen to ignore the requirements of Ontario securities law.”

The OSC agreed with its staff’s recommendation, declaring, “Requiring appropriate registration before engaging in the trading of securities in Ontario is a basic requirement of the regulatory system.”