SALE OF SECURITIES.

Ashburton Guardian, Volume 53, Issue 272, 29 August 1933, Page 5

SALE OF SECURITIES.

CANADA BANS CASVASSERS.

TORONTO, July 13

Important new regulations now are effective in the province of Ontario for protecting the public in the purchase of securities, and they have been endorsed by the Investment Bankers’' Association of Canada as good legislation which will go a long way towards saving the people from loss. Perhaps the most important clause is one which restricts house-to-house canvassing by security salesmen, and ■which reads as follows:

“No person shall call at any house for the purpose of trading in any security with the public or any member of the public, and any violation of this regulation shall constitute an offence. “In this regulation the expression, ‘house’' shall not include an office used for business purposes, and the expression ‘public’ shall not include close personal friends, business associates or customers with whom the person making the offer has been in the habit of doing regular business in the purchase or sale of shares. ■

“This regulation, shall not apply to the sale of bonds of any Government in Canada or Great Britain, or of any municipality or other incorporated body in the Dominion of Canadg, which is empowered by statute to obtain the money necessary for the payment and redemption of the bonds by public taxation.”

It is provided also that no broker or salesman “shall complete a trade with any customer until a copy of the latestprospectus of the security issued filed under the provisions of the Companies Act, 1928, has been delivered to the person to whom the offer is made.”

Another ‘clause sets it out that before a deal for securities is completed the. salesman shall deliver to the customer a statement “which clearly discloses the nature of the transaction,” whether the salesman is acting as prineipal or agent, and if the latter, the commission he is receiving.