What is the principle of Registration in Canadian securities regulation?

• A. It requires registration for all securities dealers and advisors
• B. It allows for lower fees in financial transactions
• C. It provides educational resources for investors
• D. It promotes the use of technology in trading

Answer: (A)

The principle of Registration in Canadian securities regulation is fundamentally about ensuring that all securities dealers and advisors are formally registered before engaging in any activities related to trading or advising on securities. This requirement is in place to enhance investor protection by ensuring that those who provide services in the securities market meet certain standards of competency and adhere to regulatory compliance.

By mandating registration, regulatory authorities can oversee the actions of these entities, hold them accountable, and mitigate the risk of fraud and misconduct. The registration process typically involves background checks, adherence to specific codes of conduct, and ongoing regulatory obligations, which collectively aim to foster a more secure and trustworthy investment environment. This creates a layer of accountability where registered individuals or firms are required to conduct their practices ethically and transparently, ultimately benefiting investors.

The other options do not directly relate to the core principle of Registration in the context of securities regulation, as they address aspects like fees, educational resources, and technology usage, which are not the primary focus of the registration requirement.