The British Columbia Securities Commission (BCSC) published its 2015 Annual Compliance Report Cardin May and noted that it is continuing to see many instances where dealing and advising representatives direct their firms to pay commissions or management fees to personal corporations. The report states, “We [the BCSC] understand this is tax efficient, but it is not allowed. A personal corporation that receives commissions or management fees from trading in, or advising on, securities is acting in furtherance of trades in securities.”

Only firms and individuals registered appropriately under provincial securities legislation are permitted to receive compensation for conducting registrable trading and advising activities, although in 2014, the BCSC noted that “this does not apply to corporations of approved persons of mutual fund dealers, which we have exempted from this registration requirement for historical reasons.”