Paul, this is the important sentence.
A few year ago, a foreign player try to register in the Quebec Open lowest section as an unrated. The TDs have been notified that this "unrated" guy has defeated Alexandre Lesiège in a blitz tournament. The player was transferred against its will to the Open section where GM norms were possible. The unrated player scored 50% of the possible points and got a National Master level first rating. That is the situation that the CFC Code of Ethic is targeting. It is a very bad form of sandbagging. The FQE Code of Ethics also contain a similar rule.