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12. Referral of clients to or from a person registered under the Act respecting the distribution of financial products and services, the Securities Act or the Derivatives Act

12.1 Referral of clients to a registrant

12.2 Referral of clients from a registrant


Within the context of the duty to inform the parties of products and services that concern heritage protection and relate to the transaction, or more broadly in the general course of real estate brokerage activities, licensees sometimes refer their clients, with or without remuneration. This referral may be made to a firm or its representative, an independent partnership or an independent representative governed by the Act respecting the distribution of financial products and services, or to a person registered under the Securities Act or the Derivatives Act (collectively, “AMF Registrants”). All these persons must be registered with the Autorité des marchés financiers (“AMF”).

These persons are authorized, depending on their registration with the AMF, to offer products and provide services in mortgage brokerage, damage insurance, insurance of persons and financial planning, or to execute transactions or provide advice regarding securities or derivatives. Conversely, it is also possible for an AMF Registrant to refer his own clients to you or your agency, and to receive an amount resulting from remuneration sharing.

12.1 Referral of clients to a registrant

Providing a client with the contact information of an AMF Registrant and sending an AMF Registrant a client’s contact information or a list of clients constitutes a “client referral”, according to the AMF1. It is important to specify that real estate brokers benefit from exceptions and, on certain conditions, may collect an amount resulting from commission sharing from an AMF Registrant, resulting directly from the sale of a product or the provision of a service governed by the Act respecting the distribution of financial products and services, the Securities Act or the Derivatives Act.

Obligations arising from the Real Estate Brokerage Act and its regulations

It is important to mention that, in the event of a client referral, the broker must:

  • Disclose any remuneration agreement to which he is a party with an AMF Registrant to the parties to a transaction, without delay and in writing. A copy of the notice must be filed in the transaction record of the agency or the broker acting for the agency;
  • Pay the remuneration he receives to his agency without delay;
  • Comply with the personal information protection measures stipulated in the regulations, and the requirements set out in the Act respecting the protection of personal information in the private sector.

Precautions to take

Despite the exception from which licensees benefit, they must take certain precautions in the case of a client referral, so that they do not put themselves in a situation contravening one of the three Acts mentioned above and so that they do not engage illegally in the activities of a representative, a broker or an advisor.

In particular, they must:

  • Abstain from providing the client with any advice in matters of mortgage, insurance, securities, or derivatives; and
  • Limit themselves to informing the client of the existence of such products and services.

For more information:

Information that can be given by a real estate broker to his client about insurance.

In the specific case of a client referral made in a context of securities or derivatives, the regulations adopted by the AMF require that the registrant provide such referrals pursuant to a written contract made with you.


1 The AMF took a position on the subject by publishing an Avis relatif à l’indication de clients en application de la Loi sur la distribution de produits et services financiers, Bulletin de l’Autorité des marchés financiers, October 8, 2010, vol. 7, No. 40, pages 68 to 72.

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12.2 Referral of clients from a registrant

Brokers acting on their own account or for an agency may share the remuneration they receive with any AMF Registrant. Such sharing could occur, for example, when an AMF Registrant refers his client to a broker or agency.

Obligations arising from the Real Estate Brokerage Act and its regulations

If a licensee intends to share his remuneration with an AMF Registrant, he must:

  • Disclose this fact to the party he represents, without delay and in writing, and keep a copy of this notice. A copy of the notice must be filed in the transaction record of the agency or the broker acting for the agency;
  • Disclose, to the party he represents, the identity of the registrant who will receive the proceeds of sharing, and the nature of the compensation in the case of a non-monetary benefit;
  • Ensure, if he is acting for an agency, that it is a party to any remuneration sharing agreement to the benefit of a registrant. A copy of the agreement must be filed in the transaction records of the agency or the broker acting for the agency;
  • Enter in his register of transactions a mention of the name of the person or the partnership who will receive an amount from remuneration sharing, as well as the certificate number or AMF registration number of the person or partnership.

Precautions to take

It is important to specify that under the Act respecting the distribution of financial products and services, the licensee must not share remuneration directly with a representative acting for a firm or for an independent partnership. As provided in the Real Estate Brokerage Act, remuneration or compensation must be shared with the firm or the independent partnership for which this representative acts.

In the specific context of securities or derivatives, as in the case where he refers a client to an AMF Registrant, the broker or agency, as the case may be, must be a party to a written contract regarding the referral coming from such a person. In addition, the AMF Registrant, before referring a client, must take reasonable measures to ensure that the licensee has the required status to provide the services. To ensure this, the registrant may consult the OACIQ Register of licence holders of  or ask him to show his licence.

To learn more

For more informationon the obligations arising from the Act respecting the distribution of financial products and services, the Securities Act or the Derivatives Act, visit the website of the Autorité des marchés financiers at www.lautorite.qc.ca.

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Last updated on: September 20, 2022
Numéro d'article: 253775