2.2 Statutory Definitions, Licensure Mandates & Exemptions
Key Takeaways
Under PSISA s. 2(2), a private investigator performs work, for remuneration, consisting primarily of conducting investigations to provide information; s. 2(8) counts contingent fees as remuneration.
PSISA s. 2(7) exempts lawyers, credit and suitability reporting work, persons acting as peace officers, licensed insurance adjusters and insurers, certain out-of-province investigators, security advisors, armoured car services and locksmiths.
There is no in-house exemption: a business that employs its own investigators must register under s. 5, and its investigators need licences (s. 31).
PSISA s. 6 makes it an offence to act as or hold oneself out as a private investigator without a licence and an eligible employer or ownership arrangement.
PSISA s. 9 forbids licensed investigators from collecting accounts, acting as bailiffs, carrying out tenant evictions, or locating people in witness protection.
Most licensing questions come down to two issues: does this person's work fall inside the PSISA definitions, and if so, does one of the statutory exemptions take them out of the Act? This section works through both issues using the actual wording of PSISA s. 2, then covers the prohibitions in ss. 6–9 that apply to anyone who is covered.
The Statutory Definitions (s. 2)
Section 2(1) says the Act applies to private investigators within the meaning of s. 2(2) and to security guards within the meaning of s. 2(4).
Private investigator — s. 2(2) and (3)
s. 2(2): A private investigator is a person who performs work, for remuneration, that consists primarily of conducting investigations in order to provide information.
s. 2(3): Examples of the types of information referred to in subsection (2) include information on (a) the character or actions of a person; (b) the business or occupation of a person; and (c) the whereabouts of persons or property.
The list in s. 2(3) is illustrative, not exhaustive. Three elements must be present:
- Work for remuneration. Section 2(8) adds that remuneration includes pay that is contingent, in whole or in part, on completing the work.
- Primarily investigative work. Someone whose job only occasionally involves inquiries is not a private investigator.
- The purpose is to provide information.
Security guard — s. 2(4) and (5)
s. 2(4): A security guard is a person who performs work, for remuneration, that consists primarily of guarding or patrolling for the purpose of protecting persons or property.
Section 2(5) gives three examples: acting as a bouncer, acting as a bodyguard, and performing services to prevent the loss of property through theft or sabotage in an industrial, commercial, residential or retail environment. That third example is why the ministry treats loss prevention specialists as security guards rather than investigators.
Selling services — s. 2(6)
A person whose work consists primarily of acting for others in soliciting or procuring the services of an investigator or guard is deemed to be in the business of selling those services, and therefore needs a business licence.
The Remuneration Test in Practice
| Scenario | Covered by PSISA? | Why |
|---|---|---|
| A person researches their own family tree for free | No | No remuneration |
| A retiree is paid by a law firm to locate missing witnesses | Yes | Paid work consisting primarily of investigations to provide information |
| An investigator is paid only if a missing heir is found | Yes | Contingent pay is still remuneration (s. 2(8)) |
| An office manager occasionally checks an employee's references | No | Investigation is not the primary work, and employment-suitability checks are exempt (s. 2(7)(b)(iii)) |
| A company's full-time internal fraud investigator | Yes | Primarily investigative paid work; the employer must register and the investigator needs a licence |
The Statutory Exemptions (s. 2(7))
The Act does not apply to:
| Clause | Exempt person or activity |
|---|---|
| (a) | Barristers or solicitors engaged in the practice of their profession |
| (b) | Persons whose paid work consists primarily of searching for and providing information on (i) the financial credit rating of persons, (ii) the qualifications and suitability of applicants for insurance and indemnity bonds, or (iii) the qualifications and suitability of persons as employees or prospective employees |
| (c) | A person acting as a peace officer, as defined in Criminal Code s. 2 (s. 2(9)) |
| (d) | Insurance adjusters licensed under the Insurance Act while acting in that capacity, and their employees acting in the usual scope of employment |
| (e) | Insurance companies licensed under the Insurance Act and their employees acting in the usual scope of employment |
| (f) | Out-of-province residents employed by an investigation agency licensed elsewhere in Canada who come into Ontario only to complete an inquiry that is partly outside Ontario, on behalf of a client outside Ontario |
| (g) | Security advisors who do not solicit or procure guard or investigator services |
| (h) | Armoured vehicle service providers |
| (i) | Locksmiths |
| (j) | Any class of persons exempted by regulation. O. Reg. 435/07 exempts, for example, individuals authorized by another Ontario or federal Act to conduct investigations (such as statutory government investigators) and certain licensed out-of-province bodyguards working in film and television |
Common exemption traps
- Journalists, accountants and process servers are not on the list. Serving documents does not require a PI licence, but only because service of process is not "conducting investigations"; there is no named exemption. A journalist paid to investigate is outside the Act only if the work does not meet the s. 2(2) definition.
- There is no "in-house" exemption. A business that employs its own investigators or guards must register as an employer (s. 5). Under s. 31, no business entity may employ a private investigator or security guard who lacks the appropriate licence.
- Off-duty police officers are not exempt. The exemption covers a person "acting as a peace officer." A police officer moonlighting for a private client is not acting as a peace officer and needs a licence.
- Insurance adjusters are exempt only "while acting in that capacity." An adjuster who sets up a side business doing surveillance for law firms is not.
Who May Act, and for Whom (ss. 6–7)
- Section 6: no person shall act as a private investigator or security guard, or hold himself or herself out as one, unless the person holds the appropriate licence and is (a) employed by a licensed business entity, a registered employer or an employer not required to register, or (b) the sole proprietor of, or a partner in, a licensed business entity.
- Section 7(1): no person shall sell investigator or guard services, or hold themself out as available to sell them, without the appropriate business licence, unless they are an employee acting for a licensee in the normal course of duties.
- Section 7(2): a business dealing with the public from more than one place must designate a main office and branch offices.
"Holding out" is a separate route to the same offence. A website, business card or advertisement offering investigations by an unlicensed person contravenes s. 6 or s. 7 even if no investigation has started. Contravening any provision of the Act is an offence under s. 43(1)(d), punishable under s. 45 (up to $25,000, one year in jail, or both for an individual; up to $250,000 for a business entity).
Prohibited Activities for Licensees (s. 9)
Even a fully licensed investigator may not act, or offer to act, with respect to:
- the collection of accounts;
- acting as a bailiff;
- an eviction under the Residential Tenancies Act, 2006;
- locating a person known or suspected to be in a witness protection program, or gathering information to help locate such a person.
Other Structural Rules
- One role at a time (s. 12, para. 3): a person may hold more than one licence type, but may not act as a security guard and a private investigator at the same time.
- Licences are not transferable (s. 12, para. 5), must show the licence type and expiry date, and must display a recognizable photograph of an individual holder.
- Change of officers, directors or partners (s. 8): a business licensee may not keep operating after such a change unless the Registrar consents in writing.
Which of the following individuals is exempt from the PSISA under s. 2(7)?
A full-time internal fraud investigator employed by a single retail chain
A retired police officer offering paid surveillance to private clients
An Insurance Act-licensed adjuster investigating a claim in that capacity
A freelance writer paid by an insurer to watch an injury claimant
Which statutory element under Section 2(2) of the PSISA must be satisfied for an individual's investigative inquiries regarding a person's whereabouts or character to legally trigger mandatory provincial licensure?
The inquiries must utilize electronic optical surveillance equipment
The inquiries must result in a formal report submitted to a court of law
The inquiries must be conducted on commercial premises
The investigative work must be performed for remuneration
An unlicensed person launches a website advertising "discreet surveillance and skip tracing" but has not yet taken a client. How does the PSISA treat this?
It contravenes s. 6, because advertising is holding oneself out, even before any work is done
It is lawful, provided the field surveillance is later subcontracted to a licensed agency
It becomes an offence only once the person accepts payment from a client
It is lawful for anyone who has completed the 50-hour training course
Sections you finish are checked off in the contents.