RECO receives a complaint indicating that a brokerage owner, David, has been operating without proper trust account records and potentially commingling client funds with personal funds. Which action is the RECO Registrar authorized to take in response to such a serious allegation, even before a formal hearing?

Question: RECO receives a complaint indicating that a brokerage owner, David, has been operating without proper trust account records and potentially commingling client funds with personal funds. Which action is the RECO Registrar authorized to take in response to such a serious allegation, even before a formal hearing?

Answer options: ✅ The Registrar may immediately issue an order imposing terms, conditions, or limitations on David's registration, or even suspend it, if it is in the public interest, as per TRESA.

• The Registrar must first conduct a full audit of David's books which could take several months before taking any action.
• The Registrar can only issue a warning letter to David for the first offense.
• The Registrar must refer the matter directly to the police for criminal investigation before any RECO action.

Correct answer: The Registrar may immediately issue an order imposing terms, conditions, or limitations on David's registration, or even suspend it, if it is in the public interest, as per TRESA.

Explanation: Under TRESA, the RECO Registrar has powers to immediately impose terms, conditions or limitations on a registration, or suspend it, if satisfied that it is in the public interest to do so, especially in cases of serious financial mismanagement.