Ontario broker regulator issues advisory on record-keeping after banks go electronic

RIBO has issued a bulletin advising Ontario brokers that they still need to maintain financial records for both trust and general accounts, even though the banking industry has moved into the paperless world of electronic record-keeping.
“It has come to our attention that the banking industry will no longer provide printed bank statements and cashed cheques to its customers,” RIBO notes in its Fall 2008 bulletin. “They will provide electronic images of your bank statements and cashed cheques.”
Section 17 of Ontario Regulation 991, which enables the Registered Insurance Brokers Act, says: “Every member who is required to maintain a trust account shall maintain books, records and accounts in connection with the member’s business to record,” including “a book or other permanent account record showing all receipts and disbursements of money, distinguishing therein between.”
Section 17(6) notes further that “where this Regulation requires a record to be kept by a member, it may be kept in a bound or looseleaf book, or by means of a mechanical, electronic or other device.”
In its bulletin, RIBO reminds the province’s brokers that the “change to standard banking practices is not in contravention of this regulation provided the member has the ability to produce the documents.”
RIBO notes the images of cheques must include both front and back of the cheque and, “at a minimum,” the member should be able to access at least seven years worth of these records.