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Brokerage Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

VIII. Year End Reports and Office Inspections

Exceptions Regarding Annual Financial Reporting

(a) Filing A Notice To Reader

Under section 7-7(2.1) of the Rules, the Council may authorize a brokerage to file financial statements that have been subject to a notice to reader prepared by an accountant if all of the following conditions are met:

  • for a minimum of 3 consecutive fiscal years immediately preceding the date of authorization, the brokerage has satisfied the Council with respect to its annual financial filings, and
  • during those 3 fiscal years there have been no significant trust account or general books and records exceptions
    • reported in relation to the brokerage in its annual Accountant’s Report, or
    • discovered in any review by the Council of the brokerage’s accounts and other records;
  • the Council is satisfied that, at the end of each of those 3 fiscal years, the brokerage’s current assets exceeded its current liabilities.

The Council may withdraw an authorization to file a Notice to Reader report if:

  • the brokerage does not file financial statements that comply,
  • a trust account or general books and records exception has been reported or discovered in relation to the brokerage, or
  • the Council is not satisfied that the brokerage’s current assets exceed its current liabilities at the end of any fiscal year.

Before withdrawing an authorization to file a Notice to Reader report, the Council must give the brokerage notice of its intention to do so and the reasons.

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(b) No Public Trust Money

As an alternative to filing an Accountant’s Report, a brokerage that did not hold or receive any public trust money during the fiscal year to which the financial statements relate may file with the Council a solemn declaration, completed in accordance with section 4-9.1 of the Council Bylaws, respecting

(a) that fiscal year, or

(b) if the brokerage did not carry on business for the entire fiscal year, that part of the fiscal year for which the brokerage did carry on business.

The Rules define “public trust money” as all money held or received by a brokerage and to which section 27(1), (2) or (3) of RESA applies, except remuneration that has already been earned, as determined in accordance with the Rules, by the brokerage at the time it is held or received by the brokerage.

A Trust Account Declaration form to be used for making a solemn declaration in this regard is available on the Council’s website at

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