An Ontario brokerage finds a $5,000 shortfall in its trust account. How quickly must it deposit funds to eliminate the shortfall?
Correct Answer
B) Immediately, while also notifying the registrar
O. Reg. 579/05 s. 14 requires a brokerage that determines there is a shortfall in its trust account to immediately notify the registrar and deposit sufficient funds to eliminate it. The regulation sets no hour or day count; the $5,000 must be restored at once.
Why This Is the Correct Answer
Immediately is correct because O. Reg. 579/05 s. 14 requires the brokerage to immediately notify the registrar and deposit sufficient funds to eliminate the shortfall. No grace period is provided.
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An Ontario brokerage's monthly trust account reconciliation reveals a $2,000 shortfall. What must the brokerage do?
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