An Ontario brokerage finds a $5,000 shortfall in its trust account during its monthly reconciliation and reports it to the registrar. Under TRESA, can the registrar suspend the brokerage's registration immediately?
Correct Answer
C) Yes, if it proposes suspension or revocation and considers it in the public interest
TRESA s. 15(1) lets the registrar temporarily suspend a registration by an order that takes effect immediately, but only if the registrar proposes to suspend or revoke it under s. 14 and considers an immediate suspension to be in the public interest. A shortfall does not suspend a registration automatically. The brokerage's own duty under O. Reg. 579/05 s. 14 is to notify the registrar immediately and deposit enough to eliminate the shortfall.
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