Here are some frequently asked questions that we get at the ASC. You can also find step by step "How Do I" processes in For Companies, For Dealers & Advisers and For Investors.
How do I make a complaint to the ASC?
View our Filing a Complaint page for details.
top ^
I lost money on my investments. Can the ASC get my money back?
The ASC does not have the authority to get your money back for you. The ASC can only proceed with enforcement action against individuals or companies who have breached the Securities Act. If you have lost money due to a violation of securities law, you should obtain legal advice to determine what options are available to you.
top ^
I heard that a company I am thinking about investing is named in a Cease Trade Order. What does this mean and what impact will it have on me being able to buy the shares of this company?
If a company has been cease-traded by the Commission, it is usually because the company has been delinquent in filing their financial statements. The company will have the Cease Trade Order (or CTO) in effect until such time that they file acceptable financials and make an application to the Commission for a Revocation Order.
While a CTO is in effect, the company cannot sell any of their shares. This includes private placements and exchanging loans for shares. During a Cease Trade, the company cannot promote their shares or perform any sales functions in anticipation of the CTO being revoked.
Search the national CTO database.
top ^
A few weeks ago, I requested my investment account be transferred to my new dealer; however, the transfer has still not taken place.
When you transfer from one dealer to another, it will take some time for your accounts to be transferred. This should usually take about one month. If your transfer has not been completed, you should have your new financial advisor contact your former dealer to determine the status of the transfer. There may be fees involved in transferring your account out and these will need to be settled prior to your accounts being moved. If your financial advisor is unable to resolve the matter, you should contact the branch manager or compliance officer of your former dealer. If your accounts have still not been transferred, you will need to contact the IDA, MFDA or the ASC.
top ^
My financial advisor invested all of my money in one risky security, which has since declined in value.
At the time of opening your account, you and your financial advisor should have filled out a New Client Account Form, which asks you for your investment needs and objectives, your investment knowledge level, and your personal risk tolerance level. This information is known as Know Your Client (or KYC) information and is very important, as it will allow the financial advisor to determine what investments are suitable for you. When providing this information to your financial advisor, you should ensure that it is accurate, as your advisor will use this information to make their investment recommendations. If you are unsure about any of your KYC answers, discuss them with your financial advisor before you make any trades.
If you feel that your financial advisor purchased securities that are not in line with your KYC information, you should contact your financial advisor to discuss the matter. If your financial advisor does not adequately satisfy your concerns, you should contact the branch manager or compliance officer of the firm to discuss your complaint. If the matter still remains unresolved, you will need to contact the IDA, MFDA, or the ASC.
top ^
My financial advisor bought and sold securities in my account without first obtaining my permission to do so.
The practice of buying and selling securities without contacting the client beforehand is called discretionary trading. Mutual fund salespeople are not allowed to conduct discretionary trades on your account and must contact you prior to making any transactions. If your mutual fund salesperson has ordered transactions in your account without your express permission, you should contact the compliance department of the mutual fund dealer that employs your advisor. If this does not satisfy your concerns, please contact the MFDA.
Investment advisors may be able to conduct discretionary trades, provided that you have given them explicit written consent. These accounts are called discretionary or managed accounts. If you account is not a discretionary or managed account, you should contact your investment advisor and discuss the trades that occurred on your account. If the investment advisor does not satisfy your concerns, you should contact the branch manager or the compliance officer of the firm. If the matter still remains unresolved, you will need to contact either the IDA or the ASC.
top ^
How do I find out if there have been complaints or investigations about an individual or company?
As with other regulatory or enforcement agencies, the Alberta Securities Commission must release information to the fullest extent possible, while ensuring the process of investigations and conduct of the proceedings are not prejudiced.
Under the Securities Act, the Commission cannot comment publicly as to the existence, status, or nature of an investigation being conducted. This is intended to protect the integrity of the investigation, ensure the complaint process is not used to affect the market and be just to those who are the subject of investigations.
If enforcement action has been taken against an individual or a company, this information is a matter of public record and available from the Enforcement Orders database or Scheduled Proceedings.
top ^
My financial advisor has requested that I provide him with personal financial information. Do I have to give it to him?
Under the Securities Act, all financial advisors must ensure that they collect sufficient information about their client so that they can determine if a trade is suitable. This information is known as Know Your Client (or KYC) information. When providing this information to your financial advisor, you should ensure that it is as accurate as possible, as your advisor will use this information to make their investment recommendations. If you are unsure about any of your KYC answers, discuss them with your financial advisor before you make any trades.
There is also a requirement under the new proceeds of crime and anti-terrorism laws for your financial advisor to ask you the source of the funds. However, you are not required to divulge information like credit card numbers or bank PIN’s to these individuals.
top ^
How long do I have to make a complaint to the ASC?
Due to the limitation period set out in the Securities Act, the ASC can only pursue events that can be investigated within six years of the the incident. If you have a complaint, you should forward it to the ASC as soon as possible.
top ^
What does the ASC do when it receives a complaint?
The ASC reviews complaints made against individuals or companies involved in trading securities in Alberta. If the actions of these individuals or companies suggest possible breaches of the Securities Act, further investigation may be warranted. The ASC has the power to investigate alleged breaches of the Act and to impose administrative sanctions to protect the public and enforce compliance with regulatory requirements. The ASC can also prosecute individuals or companies in the Provincial Court of Alberta.
top ^
What is insider trading?
Illegal insider trading is the act of either buying or selling securities on material information that is not publicly disclosed. Individuals that are found to be buying or selling securities on non-public information, to maximize profit or minimize losses, will be investigated by the ASC.
If an individual who works for a company tells you about a hot tip, be careful. If the information that this individual supplies you with has not been disclosed to the public, you could be trading on inside information and could face prosecution.
While illegal insider trading can be a serious threat to the confidence of the capital markets, insider trading occurs legally every day when officers and senior executives (insiders) of the company buy and sell stock.
In Alberta, as in many Canadian jurisdictions, insiders are required to report their trades within 10 days. You can access insider trading data on the System for Electronic Disclosure by Insiders (SEDI).
top ^
I have a complaint against my investment dealer/advisor or mutual fund salesperson. What do I do?
If your complaint is of a minor nature and does not reflect on the integrity of your advisor or salesperson, you should talk to your salesperson or advisor as soon as possible. If this does not resolve the matter, or if your complaint is of a serious nature, send a written complaint to the firm that employs the individual you are dealing with. Request a meeting with the branch manager or compliance officer of the firm to discuss your concerns. If the matter still remains unresolved, you will need to file a written complaint:
If the investment dealer is employed by a member firm by the Investment Dealers Association of Canada (IDA), you should file your complaint directly with them. Visit their website at www.ida.ca.
If the mutual fund salesperson is employed by a member firm of the Mutual Fund Dealers Association (MFDA), you should file your complaint directly with them. Visit their website at www.mfda.ca.
If your dealer/advisor or salesperson is employed by a firm that is NOT an IDA or MFDA member, you will need to file the complaint with the ASC. If you are unclear as to who to contact, you can contact the ASC's Information Officer at (403) 297-4296 and they may be able to tell you what regulatory body the individual is registered by.
top ^
I believe that I have been approached about an investment scheme that appears to be fraudulent and possibly illegal. What should I do?
If you have been approached about investing in a highly suspicious investment opportunity, you can use an internet-based tool for reporting economic crimes online (“RECOL”). Individuals can use the website, located at www.recol.ca, to make a complaint regarding any fraud, like identity theft, fraudulent letter or telemarketing scams, and other white-collar crimes. The complainant can then choose which enforcement agencies and other organizations that the complaint will be sent to, which will ensure that the complaints are received promptly. All information received through RECOL will be protected and only shared with those agencies specified by the complainant.
With the increasing awareness of investment fraud, RECOL is particularly interested in receiving information regarding four specific areas that are described as follows:
- Misrepresentations of Investment Information (including false prospectus), which would include concealment or misrepresentation of a material fact, which generates a scheme to obtain money or benefit.
- Prime Bank Instrument Investment Scheme, which are often seen as falsely generated bank documents purporting to support very large currency amounts.
- Fraudulent manipulation of stock exchange transactions. Some individuals may artificially influence the market prices of shares for personal gain, or to minimize losses.
- Insider trader, using information that is not available to the public for personal gain or to minimize losses.
The various organizations and agencies that are affiliated with RECOL are concerned with maintaining the integrity of the capital markets and ensuring that those individuals that are performing illegal acts are prosecuted.
top ^
If I file a complaint with the ASC, when can I expect to receive notification regarding the outcome?
When the investigation regarding your complaint has been completed, you will be advised of the final outcome. Please note your complaint may take several weeks to several months to investigate. Complex complaints may take longer to resolve.
top ^
Can I make an anonymous complaint?
Complaints are kept confidential, however, we must be able to contact complainants for more information. We cannot take action on complaints that are submitted anonymously.
top ^
My financial advisor did not place my order when I told him.
If you have concerns over the length of time it took your financial advisor to place your order, you should contact him and ask for an explanation of the delay. If the delay was a relatively short period of time, your financial advisor may have a reasonable explanation for you (i.e. depending on the time your order was placed, the markets may have been closed, etc.). However, if your order was not placed for an extended period, you should contact the branch manager or compliance officer of the firm to discuss the order in question. If the matter still remains unresolved, you will need to contact the IDA or MFDA.
top ^
A company that I invested in was supposed to go public, but I haven’t heard anything. What happens?
Beware of investment opportunities that state that they will let you invest early, when the company is still private, and then reap large rewards when the company is listed on a public exchange. Under securities law, companies cannot state that they are going to be listed before the appropriate exchange gives them permission to do so.
If you have invested in a company like this and have not heard anything, you should contact the individual who sold the investment to you. They may be able to offer some information to you on the status of the company.
top ^
I have not received my share certificates from the publicly traded company I invested in.
Depending on how your shares are registered, you may not receive actual share certificates. If your shares are registered in “street” form, the transfer agent holds these securities in trust for you. If your shares are registered in “bearer” form, your name should be on the certificates. If you would like to receive the actual share certificates of a publicly traded company, please contact the investor relations department of the company or the company's transfer agent. Please note that you may be charged a fee for this service.
top ^
What should I do if I have not received any shareholder or proxy-related materials from the company in which I hold shares?
If you have not received any shareholder or proxy-related materials from companies, you should contact your investment advisor to determine whether you have completed the required form to have your name placed on the company's mailing list. If you have filled out the appropriate forms and have not received these materials, you should contact the investor relations department of the company.
top ^