4. Using the trust account properly

A licensee enjoys the privilege of holding a trust account for the purpose of carrying on his brokerage activities. Because of this very privilege, the licensee may be a favourite target for people of dubious morals. These people may wish to enlist the services of an intermediary to collect and disburse, for illicit purposes, amounts of money so as to disguise their source or use.

Therefore, any competent licensee should be aware that trust accounts are particularly attractive to dishonest people who want, for example, to hide money from tax authorities, launder the proceeds of crime or facilitate the commission of certain frauds.

A licensee's trust account must not be used as a post office box or bank account for a client to hide illicit or fraudulent transactions. The complacent use of the trust account for a transaction not specifically related to a file in which the licensee is providing professional services is not permitted and constitutes an act that is derogatory to the dignity of the profession and violating his ethical obligations. No licensee shall receive or accept any funds, securities or other property unless they are related to the performance of a legal and clearly defined brokerage contract or mandate.

The licensee must ensure that the use of his trust account is consistent with the purpose for which this account is granted to him and made available to his clients. The OACIQ Inspection Department notably ensures compliance with the applicable rules in this regard.