By James Langton

(December 6 – 12:25 ET) – The Ontario government has finally published its proposed amendments allowing professionals to incorporate. While Bill 152 doesn’t specifically allow for brokers to be covered by these changes, it does leave the door open to it in the future.

Among a slew of other amendments, the bill proposes to allow “regulated professionals” to incorporate. While the proposal was introduced as a blanket statement in the spring budget, the proposed legislation restricts this option to: regulated health professions; lawyers; certified general accountants; chartered accountants; social workers; social service workers and veterinarians.

Under the proposals, professional regulation remains under the jurisdiction of the specific act covering that profession. For example, The Chartered Accountants Act, 1956, regulates CAs. It is the Ontario Business Corporations Act that sets out requirements allowing professionals to incorporate.

However, Bill 152 notes, “Provision is made in the Business Corporations Act to name by way of regulation other professions that may be allowed to practise through a corporation.”

The issue has become particularly important in the securities business because the new Mutual Fund Dealers Association proposes to allow limited use of personal corporations by fund dealers for non-regulated activities.