Representatives governed by the Act respecting the distribution of financial products and services or the Securities Act for the mutual fund dealer and scholarship plan dealer categories must be covered by professional liability insurance consistent with the requirements determined by regulation1. The insurance covers representatives against the financial consequences of their liability in the event of errors, omissions, fault or negligence committed by them when carrying out their activities.

You’re pursuing activities on behalf of a firm as a representative who is attached to but is not employed by the firm and you’re not covered by the firm’s insurance? Did you know that you’re required to have your own professional liability insurance?

If you act as a representative on behalf of a firm or independent partnership to which you are attached as an employee, your professional liability must be covered by the insurance contract of the firm or independent partnership. If you have any questions, please ask your responsible officer.

To learn about the mandatory professional liability insurance clauses, refer to the section Mandatory clauses.