An Ontario brokerage's monthly trust account reconciliation reveals a $2,000 shortfall. What must the brokerage do?
Correct Answer
D) Immediately notify the registrar and deposit funds to eliminate it
O. Reg. 579/05 s. 14 says that when a brokerage determines there is a shortfall in its trust account, it must immediately notify the registrar and deposit sufficient funds in the account to eliminate the shortfall. There is no 24-hour window, and both steps are required, so the brokerage must restore the full $2,000 at once.
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