7: Understanding Registration

Working with an investment professional is a choice, and if you want to work with one, there are different types of professionals that can provide an array of services. It’s important to note though that an investment professional that sells securities – investments like stocks, bonds, mutual funds, or exchange-traded funds – must be registered.

There are different forms of registration which can be confusing at first, but stick with us as we explain the basics.

Generally, unless someone is registered with a provincial securities regulator, they cannot give advice on investment products.

Registration helps protect investors because securities regulators only register individuals and investment firms if they are qualified and meet certain requirements.

There are different categories of registration, each allowing people and firms to sell and advise on different investment products.

For example, a person only registered as a representative of a mutual fund dealer can only sell and provide advice on mutual funds. Whereas a person registered in multiple registration categories may sell and advise on a broader range of investment products.

You can also turn to other professionals for their expertise in various areas of personal finance.

Be sure to choose an investment professional who is registered to sell the types of investment products you want to invest in.

You may also be considering using a robo-advisor or investing on your own. Ensure the investment service you use to manage your portfolio is registered.

If you use an unregistered investment professional, service, or website, you may risk losing all of your money.