Activities to be declared Outside activities

In pursuing their activities, representatives must maintain their professional independence and avoid conflicts of interest. They must also demonstrate availability and diligence at all times.

"Representative" here means any trainee or representative pursuing activities in a sector or sector class governed by the Act respecting the distribution of financial products and services This link will open in a new window, CQLR, c. D-9.2 (the "Distribution Act").

The term “firm” is used solely for ease of reading. It covers all registrants, including independent partnerships and independent representatives.

The Regulation respecting the pursuit of activities as a representative This link will open in a new window sets out rules relating to the pursuit of outside activities.

However, duly authorized insurance representatives are reminded that they may not offer insurance products under the distribution without a representative (“DWR”) regime. As a result, they may not pursue any outside activity that involves selling insurance products under that regime.

Definition of outside activity

By “outside activity”, the AMF means any occupation, function or activity that involves dealing with the public, whether it is remunerated or not remunerated and whether it is pursued on a full-time or part-time basis, for a specified or unspecified period.

Representatives’ obligations with respect to outside activities

In pursuing their activities, representatives must maintain their professional independence and avoid conflicts of interest. They must also demonstrate availability and diligence at all times.

Reporting outside activities to the firm

Representatives who pursue one or more outside activities must report them in writing to any firms to which they are attached. They are responsible for complying with this obligation: the AMF expects representatives to be diligent and proactive in reporting their outside activities to firms and notifying firms of any changes in a timely manner.

Representatives must report/declare their outside activities when they switch firms, even if they had previously reported them to another firm or declared them to the AMF.

Independent representatives do not need to comply with this obligation.

Representatives also registered under the Securities Act or Derivatives Act

Representatives must report their securities or derivatives activities to any firms on behalf of which they act under the Distribution Act. Where such a firm is also the firm for which they are pursuing securities or derivatives activities, they can report these activities simply by updating their registration information in the National Registration Database (NRD).

For details of all their obligations, representatives should contact their firm or read the applicable regulations.

The pursuit of outside activities

Representatives must meet the following conditions:

  • The outside activity must be unlikely to be confused with the activities of a representative. Some outside activities can cause confusion. Clients may confuse the outside activities with the activities for which a representative holds a representative’s certificate. A client with whom a representative is in a relationship arising from an outside activity must not be misled into believing that the representative is pursuing the activity on behalf of a firm, for example, or that the activity is supervised by the AMF.
  • If representatives have access to privileged or confidential information in the course of their outside activity, then they must obtain the prior written consent of the person concerned if they wish to use such information in their activities as a representative.
  • In certain cases, representatives are not allowed to offer financial products and services to the clientele developed by them in their outside activity (“Segregation of Clienteles Rule”). For more details, see the section Outside activities requiring the segregation of clienteles below.

For more information, refer to Sections 5.1 to 5.5 This link will open in a new window of the Regulation respecting the pursuit of activities as a representativeThis link will open in a new window (D-9.2, r.10)

Obligations of firms

Firms are responsible for taking steps to ensure that representatives comply with the Distribution Act and its regulations. In short, firms must oversee the conduct of the representatives attached to them and keep a record for each representative who pursues an outside activity. As such, firms may impose restrictions on, or even refuse to allow representatives to pursue, an outside activity.

For the obligations of firms, see this page.

Outside activities to be declared to the AMF

Representatives do not have to declare all the outside activities they pursue to the AMF. The only activities they have to declare to the AMF are:

  • Activities constituting a provision of finance-related services
  • Activities requiring the segregation of clienteles

Representatives who must file a declaration with the AMF do not have to suspend their outside activities. They can pursue them provided they comply with their obligations and adhere to any restrictions imposed on them by the firm. Moreover, if the declaration to the AMF is complete and undertakings are properly given, the AMF will not contact them about this matter.

Outside activities declared to the AMF prior to December 2, 2023 do not have to be declared again. Representatives must continue to comply with the guidance issued by the AMF further to such declaration. Representatives who have switched firms since then must report the outside activity to the firm to which they are currently attached, which will be required to take steps to ensure that the representative complies with the Distribution Act and its regulations.

Outside activities constituting a provision of finance-related services

Any outside activity constituting a provision of finance-related services must be declared to the AMF. Representatives must also declare, if applicable, that they are a shareholder, partner, director or officer of the business on behalf of which they are pursuing such activities.

Outside activities constituting a provision of finance-related services may also require the segregation of clienteles. Please refer to the section Outside activities requiring the segregation of clienteles.

No declaration is required if the outside activity arises from a right to practise granted by the AMF.

The AMF considers the following to be outside activities constituting a provision of finance-related services:

  • Providing loan or deposit or other banking products and services
  • Lending money or accepting deposits of money
  • Facilitating or administering mortgages, including acting as a mortgage agent or administrator
  • Carrying on a money service business, including exchanging one type of currency for another, transferring money from one person to another, or issuing or redeeming money orders, traveller’s cheques or anything similar
  • Providing tax services, including preparing tax returns or providing tax advice
  • Providing accounting or bookkeeping services
  • Providing corporate finance services, including services provided in the capacity of a controller, treasurer and chief financial officer
  • Advising persons on credit/debt restructuring
  • Providing advice on mergers and acquisition
  • Providing oversight or independent review or expert opinion on the management of an entity’s financial assets

Outside activities requiring the segregation of clienteles

Any outside activity requiring the segregation of clienteles must be declared to the AMF. Representatives must also declare, if applicable, that they are a shareholder, partner, director or officer of the business on behalf of which they are pursuing such activities.

Representatives who pursue any of the activities listed below are prohibited from soliciting and acting as a certified representative for natural persons (“individuals”) with whom they have a relationship arising from the outside activity (“segregation of clienteles”).

This rule also applies in respect of family members of the individual with whom the representative has a relationship arising from such outside activities—that is, an individual the representative knows is the individual’s spouse, the individual’s child, the spouse’s child, the individual’s mother, father, brother or sister, the spouse of the individual’s father or mother, the father or mother of the individual’s spouse or the spouse of the individual’s child.

The requirement to segregate clienteles continues to apply until the outside activity ends. In other words, representatives must segregate their clienteles until they cease to pursue the activity or cease to have a relationship with the individual and their relative(s) arising from the outside activity, as the case may be.

Insurance of persons

  • Judge or police officer.
  • Minister of religion or leader in a religious organization.
  • Member of the Ordre professionnel des avocats du Québec.
  • Member of the Ordre professionnel des notaires du Québec.
  • Member of the Ordre professionnel des infirmières et infirmiers du Québec.
  • Member of the Ordre professionnel des médecins du Québec.
  • Teacher in an educational institution at the secondary, college or university level.
  • Funeral director or any other similar duties in the funeral services industry.
  • Immigration and citizenship consultant.
  • Bankruptcy trustee.
  • Member of management or an employee of a union, other than a union formed of representatives, or of a professional association.
  • Member of the Ordre des comptables professionnels agréés, to the extent that pursuing that activity requires the representative to hold a public accountancy permit.
  • Real estate broker.
  • Any activity that places the representative in a position of influence due to the nature, training or specialized knowledge it requires. To help determine whether the activity places a representative in a position of influence, consider the degree of susceptibility the natural person has due to the person's reliance on the representative’s specialized knowledge, the expertise the outside activity requires, or trustworthiness associated with the outside activity.

Financial planning

  • Judge or police officer.
  • Minister of religion or leader in a religious organization.
  • Member of the Ordre professionnel des infirmières et infirmiers du Québec.
  • Member of the Ordre professionnel des médecins du Québec.
  • Teacher in an educational institution at the secondary, college or university level.
  • Immigration and citizenship consultant.
  • Bankruptcy trustee.
  • Member of management or employee of a union, other than a union formed of representatives, or a professional association.
  • Real estate broker.
  • Any activity that places the representative in a position of influence due to the nature, training or specialized knowledge it requires. To help determine whether the activity places the representative in a position of influence, consider the degree of susceptibility the natural person has due to the person's reliance on the representative’s specialized knowledge, the expertise the outside activity requires, or trustworthiness associated with the outside activity.

Group insurance of persons

  • Judge or police officer.
  • Minister of religion or leader in a religious organization.
  • Member of the Ordre professionnel des avocats du Québec.
  • Member of the Ordre professionnel des notaires du Québec.
  • Teacher in an educational institution at the secondary, college or university level.
  • Immigration and citizenship consultant.
  • Bankruptcy trustee.
  • Member of management or employee of a union, other than a union formed of representatives, or a professional association.
  • Member of the Ordre des comptables professionnels agréés, to the extent that pursuing that activity requires the representative to hold a public accountancy permit.
  • Real estate broker.

Damage insurance

  • Judge or police officer.
  • Minister of religion or leader in a religious organization.
  • Member of the Ordre professionnel des avocats du Québec.
  • Member of the Ordre professionnel des notaires du Québec.
  • Teacher in an educational institution at the secondary, college or university level.
  • Immigration and citizenship consultant.
  • Bankruptcy trustee.
  • Member of management or employee of a union, other than a union formed of representatives, or a professional association.
  • Member of the Ordre des comptables professionnels agréés, to the extent that pursuing that activity requires the representative to hold a public accountancy permit.
  • Real estate broker.
  • Vendor, lessor or repairer of road vehicles, off-road vehicles or boats.
  • Vendor, lessor or repairer of movable property, to the extent that the product or service is specifically related to the property. For example, a representative may pursue activities as a vendor, lessor or repairer of movable property of low value, such as plastic food containers, handcrafted jewelry, decorations or food products, if it is property for which the representative does not specifically offer insurance through a rider. A representative may have a relationship arising from the activity of vendor, lessor or repairer of property with their damage insurance broker or agent clientele if the property is covered as part of a comprehensive policy such as the equivalent of Coverage C – Personal Property (Contents) in Québec Personal Property Form 1501 of the Insurance Bureau of Canada.
  • Contractor within the meaning of section 7 of the Building Act, CQLR, c. B-1.1.
  • Supplier of services required when there is an insurance loss. These services include: post-disaster appraisal, remediation, repair or clean-up, protection of premises, controlled pumping or drying, decontamination, recovery, recycling or demolition of construction waste.

Claims adjustment

  • Judge or police officer.
  • Minister of religion or leader in a religious organization.
  • Teacher in an educational institution at the secondary, college or university level.
  • Immigration and citizenship consultant.
  • Bankruptcy trustee.
  • Member of management or employee of a union, other than a union formed of representatives, or a professional association.
  • Real estate broker.
  • Vendor, lessor or repairer of road vehicles, off-road vehicles or boats.
  • Vendor, lessor or repairer of movable property, to the extent that the product or service is specifically related to the property. For example, a claims adjuster may pursue activities as a vendor, lessor or repairer of movable property of low value, such as plastic food containers, handcrafted jewelry, decorations or food products, if it is property for which the claims adjuster does not specifically offer insurance through a rider. A claims adjuster can have a relationship arising from the activity of vendor, lessor or repairer of property with their damage insurance broker or agent clientele if the property is covered as part of a comprehensive policy such as the equivalent of Coverage C – Personal Property (Contents) in Québec Personal Property Form 1501 of the Insurance Bureau of Canada.
  • Contractor within the meaning of section 7 of the Building Act, CQLR, c. B-1.1.
  • Supplier of services required when there is an insurance loss. These services include: post-disaster appraisal, remediation, repair or clean-up, protection of premises, controlled pumping or drying, decontamination, recovery, recycling or demolition of construction waste.

Mortgage brokerage

  • Judge or police officer.
  • Minister of religion or leader in a religious organization.
  • Member of the Ordre professionnel des avocats du Québec.
  • Member of the Ordre professionnel des notaires du Québec.
  • Teacher in an educational institution at the secondary, college or university level.
  • Immigration and citizenship consultant.
  • Bankruptcy trustee.
  • Member of management or employee of a union, other than a union formed of representatives, or a professional association.
  • Member of the Ordre des comptables professionnels agréés, to the extent that pursuing that activity requires the representative to hold a public accountancy permit.
  • Money lender.
  • Loan administrator, except where the broker acts on behalf of a natural person who wants to take out or has taken out a loan secured by immovable hypothec.
  • Member of the Ordre professionnel des évaluateurs agréés du Québec.
  • Building inspector.

When and how to declare an outside activity to the AMF

Candidates must notify the AMF when completing an application for authorization of probationary period. After that, representatives must notify the AMF within 30 days of any change to the information or a document furnished to the AMF pertaining to their outside activities. Candidates therefore should not wait until their certificate is issued to declare an outside activity constituting a provision of finance-related services or requiring the segregation of clienteles. Representatives likewise should not wait until the renewal of their certificate to make such declarations.

For more information, refer to Sections 37 This link will open in a new window and 62 This link will open in a new window of the Regulation respecting the issuance and renewal of representatives’ certificates (pdf - 232 KB)This link will open in a new windowUpdated on April 8, 2020"regulation,renewal,issuance,representative, certificate,administrative,consolidated" (D-9.2, r.7).

Representatives who are registered for AMF E-Services must:

  1. Sign in to AMF E-Services;
  2. Validate the information in the identification section;
  3. In the “Insurance, F. Pl. and Mortgage Brokerage (ADFPS)” menu, select “Declaration of an outside activity”;
  4. Submit the declaration.

Representatives who are not registered for AMF E-Services can:

  1. Register for AMF E-Services by following these steps; OR
  2. Mail the Declaration of an outside activity (pdf - 320 KB)This link will open in a new windowUpdated on August 19, 2024Declaration of an Outside Activity form.
Insight

The firm must give its consent by completing the Attestation of the firm or independent partnership (pdf - 145 KB)This link will open in a new windowUpdated on December 2, 2023Appendix – Attestation of Firm or Independent Partnership - Declaration of an Outside Activity.

End of the insight

Representatives who are also registered under the Securities Act or the Derivatives Act must inform the firm with which they are registered of their outside activity. The firm has 30 days after the start of the outside activity to make the change in the NRD, if applicable.

Making a change to a previously declared outside activity

Representatives must notify the AMF of any change to the information or a document furnished regarding their outside activities within 30 days of such change.

Representatives who are registered for AMF E-Services must:

  1. Sign in to AMF E-Services;
  2. Validate the information in the identification section;
  3. In the “Other” menu, select “Other application/request”;
  4. Select “Other application/request – Certification and registration”;
  5. Complete the “Description” field to indicate the changesRepresentatives can consult their previous declarations in AMF E-Services at any time by clicking on the “Client File” drop-down menu, then selecting “Follow up on applications/requests”. regarding their outside activities.
  6. Submit the request.

Representatives who are not registered for AMF E-Services can:

  1. Register for AMF E-Services by following these steps; OR
  2. Mail the documents supporting the indicated changes.

Representatives who are also registered under the Securities Act or the Derivatives Act must inform the firm with which they are registered of any change to the information or to a document furnished regarding their outside activities. The firm has 30 days to make the change in the NRD.