| Part 1 Interpretation
1.1 Definitions of terms used throughout this Instrument
1.2 Interpretation of “securities” in Alberta, British Columbia, New Brunswick and Saskatchewan
1.3 Information may be given to the principal regulator |
Individual
registration | Part 2 Categories of registration for individuals
2.1 Individual categories
2.2 Client mobility exemption - individuals
2.3 Individuals acting for investment fund managers |
| | Part 3 Registration requirements - individuals
Division 1 General proficiency requirements
3.1 Definitions
3.2 U.S. equivalency
3.3 Time limits on examination requirements
Division 2 Education and experience requirements
3.4 Proficiency - initial and ongoing
3.5 Mutual fund dealer - dealing representative
3.6 Mutual fund dealer - chief compliance officer
3.7 Scholarship plan dealer - dealing representative
3.8 Scholarship plan dealer - chief compliance officer
3.9 Exempt market dealer - dealing representative
3.10 Exempt market dealer - chief compliance officer
3.11 Portfolio manager - advising representative
3.12 Portfolio manager - associate advising representative
3.13 Portfolio manager - chief compliance officer
3.14 Investment fund manager - chief compliance officer
Division 3 Membership in a self-regulatory organization
3.15 Who must be approved by an SRO before registration
3.16 Exemptions from certain requirements for SRO-approved persons |
| | Part 4 Restrictions on registered individuals
4.1 Restriction on acting for another registered firm
4.2 Associate advising representatives - pre-approval of advice |
| | Part 5 Ultimate designated person and chief compliance officer
5.1 Responsibilities of the ultimate designated person
5.2 Responsibilities of the chief compliance officer |
| | Part 6 Suspension and revocation of registration - individuals
6.1 If individual ceases to have authority to act for firm
6.2 If IIROC approval is revoked or suspended
6.3 If MFDA approval is revoked or suspended
6.4 If sponsoring firm is suspended
6.5 Dealing and advising activities suspended
6.6 Revocation of a suspended registration - individual
6.7 Exception for individuals involved in a hearing
6.8 Application of Part 6 in Ontario |
Firm
registration | Part 7 Categories of registration for firms
7.1 Dealer categories
7.2 Adviser categories
7.3 Investment fund manager category |
| | Part 8 Exemptions from the requirement to register
Division 1 Exemptions from dealer and underwriter registration
8.1 Interpretation of “trade” in Québec
8.2 Definition of “securities” in Alberta, British Columbia, New Brunswick and Saskatchewan
8.3 Interpretation - exemption from underwriter registration requirement
8.4 Person or company not in the business of trading in British Columbia, Manitoba and New Brunswick
8.5 Trades through or to a registered dealer
8.6 Adviser - non-prospectus qualified investment fund
8.7 Investment fund reinvestment
8.8 Additional investment in investment funds
8.9 Additional investment in investment funds if initial purchase before September 14, 2005
8.10 Private investment club
8.11 Private investment fund - loan and trust pools
8.12 Mortgages
8.13 Personal property security legislation
8.14 Variable insurance contract
8.15 Schedule III banks and cooperative associations - evidence of deposit
8.16 Plan administrator
8.17 Reinvestment plan
8.18 International dealer
8.19 Self-directed registered education savings plan
8.20 Exchange contract - Alberta, British Columbia, New Brunswick and Saskatchewan
8.21 Specified debt
8.22 Small security holder selling and purchase arrangements
Division 2 Exemptions from adviser registration
8.23 Dealer without discretionary authority
8.24 IIROC members with discretionary authority
8.25 Advising generally
8.26 International adviser
Division 3 Exemptions from investment fund manager registration
8.27 Private investment club
8.28 Capital accumulation plan exemption
8.29 Private investment fund - loan and trust pools
Division 4 Mobility exemption - firms
8.30 Client mobility exemption - firms |
| | Part 9 Membership in a self-regulatory organization
9.1 IIROC membership for investment dealers
9.2 MFDA membership for mutual fund dealers
9.3 Exemptions from certain requirements for SRO members |
| | Part 10 Suspension and revocation of registration - firms
Division 1 When a firm’s registration is suspended
10.1 Failure to pay fees
10.2 If IIROC membership is revoked or suspended
10.3 If MFDA membership is revoked or suspended
10.4 Activities not permitted while a firm’s registration is suspended
Division 2 Revoking a firm’s registration
10.5 Revocation of a suspended registration - firm
10.6 Exception for firms involved in a hearing
10.7 Application of Part 10 in Ontario |
Business
operations | Part 11 Internal controls and systems
Division 1 Compliance
11.1 Compliance system
11.2 Designating an ultimate designated person
11.3 Designating a chief compliance officer
11.4 Providing access to board
Division 2 Books and records
11.5 General requirements for records
11.6 Form, accessibility and retention of records
Division 3 Certain business transactions
11.7 Tied settling of securities transactions
11.8 Tied selling
11.9 Registrant acquiring a registered firm’s securities or assets
11.10 Registered firm whose securities are acquired |
| | Part 12 Financial condition
Division 1 Working capital
12.1 Capital requirements
12.2 Notifying the regulator of a subordination agreement
Division 2 Insurance
12.3 Insurance - dealer
12.4 Insurance - adviser
12.5 Insurance - investment fund manager
12.6 Global bonding or insurance
12.7 Notifying the regulator of a change, claim or cancellation
Division 3 Audits
12.8 Direction by a regulator to conduct an audit or review
12.9 Co-operating with the auditor
Division 4 Financial reporting
12.10 Annual financial statements
12.11 Interim financial information
12.12 Delivering financial information - dealer
12.13 Delivering financial information - adviser
12.14 Delivering financial information - investment fund manager |
Client
relationships | Part 13 Dealing with clients - individuals and firms
Division 1 Know your client and suitability
13.1 Investment fund managers exempt from this Division
13.2 Know your client
13.3 Suitability
Division 2 Conflicts of interest
13.4 Identifying and responding to conflicts of interest
13.5 Restrictions on certain managed account transactions
13.6 Disclosure when recommending related or connected securities
Division 3 Referral arrangements
13.7 Definitions - referral arrangements
13.8 Permitted referral arrangements
13.9 Verifying the qualifications of the person or company receiving the referral
13.10 Disclosing referral arrangements to clients
13.11 Referral arrangements before this Instrument came into force
Division 4 Loans and margin
13.12 Restriction on lending to clients
13.13 Disclosure when recommending the use of borrowed money
Division 5 Complaints
13.14 Application of this Division
13.15 Handling complaints
13.16 Dispute resolution service |
| | Part 14 Handling client accounts - firms
Division 1 Exemption for investment fund managers
14.1 Investment fund managers exempt from Part 14
Division 2 Disclosure to clients
14.2 Relationship disclosure information
14.3 Disclosure to clients about the fair allocation of investment opportunities
14.4 When the firm has a relationship with a financial institution
14.5 Notice to clients by non-resident registrants
Division 3 Client assets
14.6 Holding client assets in trust
14.7 Holding client assets - non-resident registrants
14.8 Securities subject to a safekeeping agreement
14.9 Securities not subject to a safekeeping agreement
Division 4 Client accounts
14.10 Allocating investment opportunities fairly
14.11 Selling or assigning client accounts
Division 5 Account activity reporting
14.12 Content and delivery of trade confirmation
14.13 Semi-annual confirmations for certain automatic plans
14.14 Client statements |
Exemption
from this
Instrument | Part 15 Granting an exemption
15.1 Who can grant an exemption |
Transition and
timing | Part 16 Transition
16.1 Change of registration categories - individuals
16.2 Change of registration categories - firms
16.3 Change of registration categories - limited market dealers
16.4 Registration for investment fund managers active when this Instrument comes into force
16.5 Temporary exemption for Canadian investment fund manager registered in its principal jurisdiction
16.6 Temporary exemption for foreign investment fund managers
16.7 Registration of exempt market dealers
16.8 Registration of ultimate designated persons
16.9 Registration of chief compliance officers
16.10 Proficiency for dealing and advising representatives
16.11 Capital requirements
16.12 Continuation of existing discretionary relief
16.13 Insurance requirements
16.14 Relationship disclosure information
16.15 Referral arrangements
16.16 Complaint handling
16.17 Client statements - mutual fund dealers
16.18 Transition to exemption - international dealers
16.19 Transition to exemption - international advisers
16.20 Transition to exemption - portfolio manager and investment counsel (foreign) |
| | Part 17 When this Instrument comes into force
17.1 Effective date |
| Forms | Form 31-103F1 Calculation of Excess Working CapitaL
Form 31-103F2 Submission to Jurisdiction and Appointment of Agent for Service
Form 31-103F3 Use of Mobility Exemption |
| Appendices | Appendix A - Bonding and Insurance Clauses
Appendix B - Subordination Agreement
Appendix C - New Category Names - Individuals
Appendix D - New Category Names - Firms
Appendix E - Non-Harmonized Capital Requirements
Appendix F - Non-Harmonized Insurance Requirements |
