Understanding Registration
Who needs to be registered?
Any individual or firm who is in the business of advising or trading in securities or derivatives in New Brunswick must be registered with the Commission. Individuals must also be sponsored by a firm that is registered with the Commission. In some cases, an exemption may apply. Learn more about exemptions.
Depending on the type of services provided, an individual or firm may be required to be registered as an Adviser, Dealer or Investment Fund Manager. Different categories of registration exist under each. The category of registration tells you the investment products or services an individual or firm can offer.
Being registered, however, doesn’t mean all firms and individuals have the same skills, provide the same services or charge the same fees. Make sure you understand their qualifications, and the products or services they are selling you.
Categories of Registration
Investment dealer: A business that sells a broad selection of investments including shares, bonds, mutual funds and limited partnerships. Some investment dealer businesses offer advice and a full range of services, such as market analysis, securities research and portfolio management. Others act more like brokers, selling or buying securities based on your instructions.
Mutual fund dealer: A business that sells only mutual funds.
Scholarship plan dealer: A business that pools your contributions to a Registered Education Savings Plan (RESP) to invest in scholarship plan units.
Exempt market dealer: A business that sells a private company’s exempt securities (does not have to file a prospectus).
Restricted dealer: A special kind of registration used when a business doesn’t quite fit under any other category. Securities regulators tailor each registration with specific requirements.
Portfolio manager: A business that gives advice to others and manages your portfolio according to the instructions or discretionary authority you have given.
Restricted portfolio manager: A business that focuses on giving advice about a particular sector or industry (real estate, oil and gas, biotech, etc.). The securities regulators will assign restrictions tailored to the business’ expertise.
Investment fund manager: A company that runs the operations of an investment fund.
Dealing representative: A salesperson – what they can sell depends on the firm they work for and their registration.
Advising representative: A person who provides advice on securities to clients. They can manage your investment portfolio according to your instructions. They can also make decisions and trade securities on your behalf.
Associate advising representative: They provide advice under the supervision of an advising representative.
Ultimate designated person: The chief executive officer of the securities dealing/advising business. They are responsible for their business’ overall compliance with securities law.
Chief compliance officer: Manages a securities dealing or advises business’ day-to-day compliance with securities law.
Other common financial titles and designations
The list below provides some common job titles found in the Canadian financial services sector and some commonly held designations associated with them. These designations– or the use of “advisor” in a person’s title– do not mean a person is registered or licensed to sell or give advice on specific investments or insurance products. They indicate what kind of education or experience a person has.
The Commission does not endorse any designation or profession. You should always verify the person’s qualifications before seeking advice.
Investment and Wealth Advisors (FCSI, CIWM)
You will find these people working at investment firms managing individual client portfolios. The designation Fellow of the Canadian Securities Institute (FCSI) means the individual has advanced education and experience in financial services. The Certified International Wealth Manager (CIWM) program trains people to manage the portfolios of high net worth individuals.
Investment and Portfolio Managers (CFA, CIM)
People in these positions may hold a Chartered Financial Analyst (CFA) or Chartered Investment Management (CIM) designation. The CFA and CIM programs focus on portfolio management (making the investment decisions for clients) and investment analysis. People holding these designations may manage the portfolios of individual clients, investment funds, or businesses.
Financial Planners (ChFC, CFP, PFP, RFP)
Financial planners help you create a financial plan and give advice on topics like tax, estate, and retirement planning. Chartered Financial Consultants (ChFC), Certified Financial Planners (CFP), Personal Financial Planners (PFP), and Registered Financial Planners (RFP) take courses and write exams to get their designation. Financial Planners need to be registered if they sell or give advice on specific investments.
Insurance, Health and Estate Advisors (CIP, FCIP, CLU, CAIB)
Individuals working in the insurance industry may use specific designations. Some examples are: a Chartered Insurance Professional (CIP), Fellow Chartered Insurance Professional (FCIP), and a Canadian Accredited Insurance Broker (CAIB) and Chartered Life Underwriter (CLU).
CIPs, FCIPs and CAIBs all work in property and casualty insurance (such as home or automobile insurance). A CLU works in the life insurance industry.
Accountants (CPA; CPA, CA; CPA, CGA; and CPA, CMA)
Accountants provide a variety of services to clients and business owners, including tax advice, financial management, and business planning, to name a few. The current accounting designation in Canada for new graduates is Chartered Professional Accountant (CPA). Accountants who have a legacy designation of Chartered Accountant (CA), Certified General Accountant (CGA), or Certified Management Accountant (CMA) must combine it with CPA (for example, CPA, CA).
Lawyers (LLB/JD)
You will find lawyers specializing in corporate finance or securities working for firms, public companies, or regulators. Lawyers working with individual clients help with estate planning, taxes, and business law among other areas.
University Finance and Business Degrees (BCom/BComm, BBA, MBA)
Individuals whose university education focused on finance and business often work in the financial industry in a variety of roles. They may hold a Bachelor of Commerce (BCom/BComm), Bachelor of Business Administration (BBA), or Master of Business Administration (MBA). Often, these degree holders will hold other finance-specific or accounting designations.