Quebec Nominee Agreement Disclosure

Quebec Nominee Agreement Disclosure: What You Need to Know

If you`re planning to invest in Quebec, it`s important to understand the province`s regulations regarding nominee agreements. A nominee agreement is a legal arrangement where an individual or organization (the nominee) holds assets on behalf of another party (the beneficial owner). In Quebec, certain types of nominee agreements require disclosure to the Autorité des marchés financiers (AMF) to ensure transparency and compliance with securities laws.

What is a Quebec Nominee Agreement?

A Quebec Nominee Agreement is a legal document that provides for the appointment of a nominee to hold securities on behalf of the beneficial owner. This arrangement allows for the transfer of legal title to the securities without transferring the beneficial interest. The nominee acts as a legal representative of the beneficial owner, holding the securities in trust for them.

In Quebec, nominee agreements are regulated by the Securities Act (Quebec) and the Derivatives Act (Quebec). These acts require disclosure of certain types of nominee agreements to the AMF.

Types of Quebec Nominee Agreements Requiring Disclosure

The following types of nominee agreements require disclosure to the AMF:

1. Investment Fund Manager Nominee Agreements: If an investment fund manager appoints a nominee to hold securities on behalf of a fund, they must disclose the details of the arrangement to the AMF.

2. Dealer Nominee Agreements: If a dealer appoints a nominee to hold securities on behalf of a client, they must disclose the details of the arrangement to the AMF.

3. Derivatives Dealer Nominee Agreements: If a derivatives dealer appoints a nominee to hold securities on behalf of a client, they must disclose the details of the arrangement to the AMF.

Disclosure Requirements

The disclosure requirements for Quebec Nominee Agreements are as follows:

1. Investment Fund Manager Nominee Agreements: Investment fund managers must disclose the details of the nominee agreement to the AMF within 10 days of entering into the arrangement. The disclosure must include the name of the nominee, the name of the fund, the securities held by the nominee, and the terms of the agreement.

2. Dealer Nominee Agreements: Dealers must disclose the details of the nominee agreement to the AMF within 10 days of entering into the arrangement. The disclosure must include the name of the nominee, the name of the client, the securities held by the nominee, and the terms of the agreement.

3. Derivatives Dealer Nominee Agreements: Derivatives dealers must disclose the details of the nominee agreement to the AMF within 10 days of entering into the arrangement. The disclosure must include the name of the nominee, the name of the client, the securities held by the nominee, and the terms of the agreement.

Conclusion

If you`re planning to invest in Quebec, it`s important to understand the province`s regulations regarding nominee agreements. Certain types of nominee agreements require disclosure to the AMF to ensure transparency and compliance with securities laws. Investment fund manager nominee agreements, dealer nominee agreements, and derivatives dealer nominee agreements all require disclosure within 10 days of entering into the arrangement. By understanding these requirements, you can ensure that your investments in Quebec are conducted in compliance with regulatory requirements.

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