Gershon is a Dealing Representative and he opens a new account for his client, Isaac. Gershon collects the necessary information from Isaac in order…

The role of a Trusted Contact Person (TCP) was introduced as part of the Client Focused Reforms to protect vulnerable clients. A TCP is an individual whom the registrant (the firm or Dealing Representative) may contact in specific, limited circumstances. These include concerns about possible financial exploitation of the client or concerns about the client's mental capacity to make financial decisions. The TCP serves as a resource to help the firm protect the client's financial interests but has no legal authority to make decisions or transact on the account. Contacting the TCP is done with the client's prior consent.

A. A TCP is not a substitute for a Power of Attorney (POA) and has no authority to make changes or direct trades on the account.

B. The registrant firm, not the TCP, has the authority to place a temporary hold on an account under specific circumstances of suspected financial exploitation.

D. This describes the authority of a person with a Power of Attorney or legal trading authority, not the role of a Trusted Contact Person.

1. Canadian Securities Administrators (CSA). (2021). Amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Section 13.2.1 outlines the requirement to take reasonable steps to obtain TCP information from a client.

2. Mutual Fund Dealers Association of Canada (MFDA). (2020, December 3). Guidance on the Trusted Contact Person. MFDA Bulletin #0849-P. This bulletin clarifies the role and limitations of a TCP, stating they can be contacted if there are concerns about the client's mental capacity.

3. Investment Industry Regulatory Organization of Canada (IIROC). (2020). Guidance on the Trusted Contact Person. IIROC Rules Notice 20-0234. This notice specifies that the TCP is a resource for the dealer when there are concerns about a client's welfare.