LPS 4-01 - Commodity Contract Act Registration Requirements [Rescinded]
| Published Date: | 1985-12-16 |
|---|---|
| Effective Date: | 1986-02-01 |
| Rescinded Date: | 1996-01-01 |
1.0 General
1.1 Commodity Contract Act section 13(l)(a) provides that no person shall trade in a commodity contract unless that person is registered as a commodity contracts dealer, as a commodity contracts salesman, as a commodity contracts trading partner or officer or as a floor trader. Section 13 (1) (b) provides that no person shall act as a commodity contracts adviser unless the person is registered as a commodity contracts adviser or as a commodity contracts advising partner or officer.
1.2 Section 14 provides that registration shall be granted where, in the superintendent's opinion, the applicant is suitable for registration and the proposed registration is not objectionable. This Local Policy Statement sets out the criteria which the superintendent will consider in determining the suitability of an applicant for registration and the standard conditions that will be imposed on that registration.
2.0 Definitions
In this Local Policy Statement:
2.1 are incorporated all definitions in the Interpretation Act and the Commodity Contract Act and regulations,
2.2 "Branch Managers I Examination" means the examination by that name prepared and conducted by the Canadian Securities Institute,
2.3 "Canadian Futures Examination" means the examination of that name prepared and conducted by the Canadian Securities Institute,
2.4 "commingled funds investment portfolio" means, an investment portfolio of a bank, trust company, loan company, insurance company, mutual fund or pension plan, including a profit sharing or deferred profit sharing or other retirement savings or similar plan but excluding a self-administered retirement savings plan,
2.5 "Commodity Supervisors' Examination" means the examination of that name proposed and conducted by the Canadian Securities Institute,
2.6 "discretionary account" means an account over which a client gives a commodity contracts dealer or commodity trading manager discretion, which discretion may be complete or limited, as to the purchase and sale of commodity contracts,
2.7 "managed account" means an investment portfolio of a client managed by a commodity contracts dealer or commodity trading manager through discretionary authority granted by the client on a continuing basis, whether in consideration of fees or otherwise, where:
2.7.1 the investment portfolio is a commingled funds investment portfolio, or
2.7.2 the management of the investment portfolio by the commodity contracts dealer or commodity trading manager arises because the commodity contracts dealer or commodity trading manager has held itself out or has described itself as having special skills or ability regarding the management of investment portfolios,
but shall not include
2.7.3 the management of the investment portfolio on a temporary basis at the written request of a client because of the inability of the client to communicate instructions by reason of absence, illness or other reasonable cause, or
2.7.4 the management of the investment portfolio on a continuing basis by a partner or officer of the commodity contracts dealer or commodity trading manager on the basis of a personal relationship between the partner or officer and the client, where the management was in effect on February 1, 1986,
2.8 "National Commodity Futures Examination" means the examination of that name prepared by the Chicago Board of Trade and conducted in the United States of America by the National Association of Securities Dealers, Inc. and in Canada by the Canadian Securities Institute,
2.9 "omnibus account" means an account carried by a commodity contracts dealer in which the transactions of two or more persons are combined and effected in that account without disclosure of the identity of the person,
2.10 "Partners/Directors/officers Qualifying Examination" means the examination by that name prepared and conducted by the Canadian securities Institute, and
2.11 "self regulatory body" means an association or organization of registrants recognized by the superintendent as a self regulatory body pursuant to section 10 of the Act.
3.0 Commodity Contracts Dealer
Form
3.1 An applicant shall submit a completed Form 1.
Fee
3.2 An applicant shall submit a fee of $5,000 plus $100 for each branch office in British Columbia. Cheques must be made payable to the Minister of Finance.
Residence
3.3 An applicant shall comply with the residence requirements set out in section 18 of the Act.
Financial Statements
3.4.1 An applicant shall submit one copy of each of the following documents:
3.4.1.1 the audited annual financial statement for the applicant's last fiscal year,
3.4.1.2 any interim financial statements prepared since the applicant's last fiscal year end, and
3.4.1.3 an audited Joint Regulatory Financial Questionnaire and Report prepared as of a date not more than one month prior to the date of filing of the application.
3.4.2 Notwithstanding subsection 3.4.1, an applicant should not submit any of the documents referred to in that subsection which are already on file in the superintendent's office.
3.4.3 An applicant who is not a member in good standing of a self regulatory body shall submit to the superintendent a written direction to its auditor instructing that auditor to conduct, at the applicant's expense, any audit requested by the superintendent during the applicant's registration.
Minimum Capital
3.5 An applicant shall have net free capital equal to or greater than the total capital requirement calculated in accordance with Statement D of the Joint Regulatory Financial Questionnaire and Report.
Insurance
3.6.1 An applicant shall have arranged insurance by means of
3.6.1.1 a broker's blanket bond with trading losses coverage, or
3.6.1.2 a comprehensive dishonesty, disappearance and destruction policy with trading losses coverage on terms acceptable to the superintendent and in an amount of not less than $200,000 or such larger amount as is indicated to be necessary by the statement referred to in subsection 3.6.2.
3.6.2 An applicant who is not a member in good standing of a self regulatory body shall submit a certified statement confirming that the applicant has, or that the partners or directors of the applicant have, given full consideration to the amount of insurance necessary to cover the insurable risks of the applicant's business and that
3.6.2.1 $200,000 coverage is sufficient, or
3.6.2.2 $200,000 coverage is insufficient but that an indicated amount of coverage would be sufficient.
Compensation Fund/Security Deposit
3.7 An applicant shall
3.7.1 be a member in good standing of a self regulatory body which participates in a compensation fund or contingency fund, or
3.7.2 place on deposit with the superintendent's office an amount required by the superintendent.
Designated Commodity Supervisor
3.8.1 An applicant who is not a member in good standing of a self regulatory body shall appoint at least one officer in the Province as a Designated Commodity Supervisor. Where necessary to ensure continuous supervision, one or more alternate Designated Commodity Supervisors shall be appointed. All Designated Commodity Supervisors must be approved by the superintendent.
3.8.2 All Designated Commodity Supervisors shall have
3.8.2.1 successfully completed the Commodity Supervisors' Examination, or
3.8.2.2 had such supervisory experience in the commodities industry as is acceptable to the superintendent.
Procedure Manual
3.9.1 An applicant who is not a member in good standing of a self regulatory body shall submit a procedure manual for the approval of the superintendent.
3.9.2 The procedure manual must, at a minimum, describe or refer to
3.9.2.1 the policies relating to the acceptance of new accounts, including
3.9.2.1.1 a requirement that, prior to the opening of an account, the client is furnished with and signs copies of all applicable client information documents approved by the superintendent pursuant to subsection
3.9.2.1.2 a requirement that the Designated Commodity Supervisor approve in writing all new accounts before they begin to trade,
3.9.2.1.3 the criteria used to review account applications and impose appropriate trading restrictions,
3.9.2.1.4 the making of enquiries with respect to the identity, reputation and credit worthiness of clients,
3.9.2.1.5 an assessment of the suitability of trading by the client in view of the markets in which the client intends to trade, the scale of trading the client intends to undertake and the general financial needs and objectives of the client,
3.9.2.2 the delivery to clients of the statements and trade confirmations required by the Act,
3.9.2.3 the review by the Designated Commodity Supervisor of each client's cumulative monthly trading activity by no later than the date of mailing of the client's statement for the preceding month,
3.9.2.4 the policies relating to discretionary and managed accounts, including
3.9.2.4.1 a requirement that, prior to the opening of a managed account, the client is furnished with and signs a copy of the disclosure document approved by the superintendent pursuant to Local Policy Statement 4-2,
3.9.2.4.2 a requirement that trades for accounts be effected only by commodity contracts salesmen or commodity contracts trading partners or officers who have been actively employed to deal in, advise on or perform analysis of commodity contracts for a period of at least two years,
3.9.2.4.3 a requirement that each account be supervised separately and distinctly from other accounts,
3.9.2.4.4 requirements respecting the approval of each order and the monthly financial performance review of each account by the Designated Commodity Supervisor,
3.9.2.4.5 standards directed to ensuring fairness in the allocation of executed orders among accounts,
3.9.2.5 the policies relating to omnibus accounts, including
3.9.2.5.1 the maintenance of separate omnibus accounts for non-discretionary or non-managed client accounts, for discretionary or managed client accounts and for firm and associated accounts,
3.9.2.5.2 the allocation of executed orders among component accounts within omnibus accounts, and
3.9.2.5.3 a requirement that every client for whom a trade is effected through an omnibus account provide at least the amount of margin that would be required were the trade to be effected through a fully disclosed account,
3.9.2.6 the continuous supervision by the Designated Commodity Supervisor of each day's trading and the completion by that individual of a review of each day's trading by no later than the next trading day,
3.9.2.7 the procedures used to maintain continuing awareness of pending delivery and expiry months,
3.9.2.8 the record keeping procedures, including
3.9.2.8.1 the books and records which will be maintained in order to properly record the applicant's business and financial affairs,
3.9.2.8.2 details as to the means (mechanical, electronic,, etc.) by which these records will be kept and the precautions taken to guard against their falsification, and
3.9.2.8.3 the length of time and the places at which these records will be maintained,
3.9.2.9 the receipt and control of clients' money, securities, property and funds, including the authorization, allocation and delivery of clients' securities to deposit institutions as collateral for a loan,
3.9.2.10 the transfer of money, securities, property, proceeds or funds between a client's commodities and securities accounts,
3.9.2.11 the operation and review of firm trading accounts,
3.9.2.12 the investigation of individuals prior to sponsoring applications for registration as commodity contracts salesmen, commodity contracts trading partners or officers or floor traders,
3.9.2.13 the details of any duties or responsibilities delegated to staff,
3.9.2.14 the controls in place to ensure that the procedures outlined in the procedure manual are carried out at all branch offices, and
3.9.2.15 the periodic review of these procedures in order to determine their continued adequacy and effectiveness.
3.9.3 An applicant who is not a member in good standing of a self regulatory body shall appoint at least one officer in the Province as a Compliance Officer, which individual shall be responsible for ensuring compliance with the procedure manual referred to in subsection 3.9.2. All Compliance officers must be approved by the superintendent.
Personnel
3.10.1 An applicant shall employ in its head office and in each branch office at least two individuals, each of whom is registered as a commodity contracts salesman or as a commodity contracts trading partner or officer.
3.10.2 At least one of the individuals referred to in subsection 3.10.1 must be available in each office to serve clients under normal circumstances and during usual business hours.
Client Information
3.11.1 An applicant who is not a member in good standing of a self regulatory body shall submit for the approval of the superintendent its
3.11.1.1 account application form,
3.11.1.2 trading agreement,
3.11.1.3 margin agreement,
3.11.1.4 hedge letter,
3.11.1.5 client authorization form/trading agreement for discretionary and managed accounts, and
3.11.1.6 client information/risk disclosure statement
with respect to commodity futures contracts, commodity futures options and commodity options.
3.11.2 Please note that section 31(l) of the Act, which requires that all prospective clients be furnished with an information statement in the prescribed form, has not been proclaimed. This will allow commodity contracts dealers to use their own agreements and statements, subject to the prior approval of a self regulatory body or the superintendent.
4.0 Commodity Contracts Salesman, Floor Trader or Commodity Contracts Trading Partner or Officer
Form
4.1.1 An applicant shall submit a completed Form 1-U-85, Uniform Application for Registration/Approval.
4.1.2 When completing question 3 of Form I-U-85, Type of Registration or Approval Requested, the applicant shall check "Other (Specify)" under the "Registered Representative or Salesperson Registration" section and shall specify one of the following:
4.1.2.1 Commodity Contracts Salesman,
4.1.2.2 Commodity Contracts Trading Partner,
4.1.2.3 Commodity Contracts Trading officer (state title), or
4.1.2.4 Floor Trader.
Fee
4.2 An applicant shall submit a fee of $500. Cheques must be made payable to the Minister of Finance.
Residence
4.3 An applicant shall comply with the residence requirements set out in section 18 of the Act.
Proficiency
4.4.1 An applicant shall have successfully completed the Canadian Futures Examination and the National Commodity Futures Examination.
4.4.2 An applicant for registration as a partner or officer shall have successfully completed %-.he Partners/Directors/officers Qualifying Examination.
4.4.3 Notwithstanding subsections 4.4.1 and 4.4.2, an applicant who has not successfully completed the required examinations may still be registered provided the applicant has had such experience in the commodities industry as is acceptable to the superintendent.
4.4.4 An applicant shall have been employed by a registered commodity contracts dealer for three months prior to the date of filing of the application.
5.0 Non-Trading Partner, Director or Officer of a Commodity Contracts Dealer or Branch Manager of a Commodity Contracts Dealer
Form
5.1.1 An applicant shall submit a completed Form 1-U-85, Uniform Application for Registration/Approval.
5.1.2 When completing question 3 of Form 1-U-85, Type of Registration or Approval Requested, the applicant shall check "Other (specify)" under the "Others" section and shall specify one of the following:
5.1.2.1 Non-Trading Partner of a Commodity Contracts Dealer,
5.1.2.2 Non-Trading Director of a Commodity Contracts Dealer,
5.1.2.3 Non-Trading Officer of a Commodity Contracts Dealer (state title), or
5.1.2.4 Branch Manager of a Commodity Contracts Dealer.
Residence
5.2 An applicant shall comply with the residence requirements set out in section 18 of the Act.
Proficiency
5.3.1 An applicant for approval as a partner, officer or branch manager or, if the applicant is not an individual, the individual responsible for discharging the obligations of the applicant as a partner, shall have successfully completed the Canadian Futures Examination and the National Commodity Futures Examination.
5.3.2 An applicant for approval as a partner, director or officer shall have successfully completed the Partners/Directors/Officers Qualifying Examination.
5.3.3 An applicant for approval as a branch manager shall have successfully completed the Branch Managers' Examination.
5.3.4 Notwithstanding subsections 5.3.1, 5.3.2 and 5.3.3, an applicant who has not successfully completed the required examinations may still be approved provided the individual has had such experience in the commodities industry as is acceptable to the superintendent.
6.0 Commodity Contracts Adviser
Form
6.1 An applicant shall submit a completed Form 1.
Fee
6.2 An applicant shall submit a fee of $3,000 plus $100 for each branch office in British Columbia. Cheques must be made payable to the Minister of Finance.
Residence
6.3 An applicant shall comply with the residence requirements set out in section 18 of the Act.
Financial Statements
6.4.1 An applicant shall submit a copy of each of the following documents:
6.4.1.1 the audited annual financial statement for the applicant's last fiscal year, and
6.4.1.2 any interim financial statements prepared since the applicant's last fiscal year end.
6.4.2 Notwithstanding subsection 6.4.1, an applicant should not submit any of the documents referred to in that subsection which are already on file in the superintendent's office.
6.4.3 An applicant who is not a member in good standing of a self regulatory body shall submit to the superintendent a written direction to its auditor instructing that auditor to conduct, at the applicant's expense, any audit requested by the superintendent during the applicant's registration.
Minimum Capital
6.5 An applicant shall have working capital of $5,000 or such greater amount as the superintendent considers necessary.
Insurance
6.6.1 An applicant shall have arranged insurance on terms acceptable to the superintendent in an amount of not less than $10,000 or such larger amount as is indicated to be necessary by the statement referred to in subsection 6.6.2.
6.6.2 An applicant who is not a member in good standing of a self regulatory body shall submit a certified statement confirming that the applicant has, or that the partners or directors of the applicant have, given full consideration to the amount of insurance necessary to cover the insurable risks of the applicant's business and that either
6.6.2.1 $10,000 coverage is sufficient, or
6.6.2.2 $10,000 coverage is insufficient but that an indicated amount of coverage would be sufficient.
Designated Commodity Supervisor
6.7.1 An applicant who is not a member in good standing of a self regulatory body shall appoint at least one officer in the Province as a Designated Commodity Supervisor. Where necessary to ensure continuous supervision, one or more alternate Designated Commodity Supervisors shall be appointed. All Designated Commodity Supervisors must be approved by the Superintendent.
6.7.2 All Designated Commodity Supervisors shall have
6.7.2.1 successfully completed the Commodity Supervisors' Examination, or
6.7.2.2 has such supervisory experience in the commodities industry as is acceptable to the superintendent.
Procedure Manual
6.8.1 An applicant who is not a member in good standing of a self regulatory body shall submit a procedure manual for the approval of the superintendent.
6.8.2 The procedure manual must, at a minimum, describe or refer to
6.8.2.1 the policies relating to the acceptance of new accounts, including
6.8.2.1.1 a requirement that, prior to the opening of an account, the client is furnished with and signs copies of all applicable client information documents approved by the superintendent pursuant to subsection 6.9.1,
6.8.2.1.2 a requirement that the Designated Commodity Supervisor approve in writing all new accounts before they begin to trade,
6.8.2.1.3 the criteria used to review account applications and impose appropriate trading restrictions,
6.8.2.1.4 the making of enquiries with respect to the identity, reputation and credit worthiness of clients,
6.8.2.1.5 an assessment of the suitability of trading by the client in view of the markets in which the client intends to trade, the scale of trading the client intends to undertake and the general financial needs and objectives of the client.
6.8.2.2 the review by the Designated Commodity Supervisor of each client's cumulative monthly trading activity,
6.8.2.3 where the applicant is applying for registration as a commodity trading manager, the policies relating to discretionary and managed accounts, including
6.8.2.3.1 a requirement that, prior to the opening of a managed account, the client is furnished with and signs a copy of the disclosure document approved by the superintendent pursuant to Local Policy Statement 4-2,
6.8.2.3.2 a requirement that each account be supervised separately and distinctly from other accounts,
6.8.2.3.3 requirements respecting the approval of each order and the monthly financial performance review of each account by the Designated Commodity Supervisor, and
6.8.2.3.4 standards directed to ensuring fairness in the allocation of executed orders among accounts,
6.8.2.4 the continuous supervision by the Designated Commodity Supervisor of each day's trading and the completion by that individual of a review of each day's trading by no later than the next trading day,
6.8.2.5 the procedures used to maintain continuing awareness of pending delivery and expiry months,
6.8.2.6 the record keeping procedures, including
6.8.2.6.1 the books and records which will be maintained in order to properly record the applicant's business and financial affairs,
6.8.2.6.2 details as to the means (mechanical, electronic, etc.) by which these records will be kept and the precautions taken to guard against their falsification, and
6.8.2.6.3 the length of time and the places at which these records will be maintained,
6.8.2.7 the requirement that clients' money, securities, property and funds be deposited directly with a registered commodity contracts dealer,
6.8.2.8 the operation and review of firm trading accounts,
6.8.2.9 the investigation of individuals prior to sponsoring applications or registration as commodity contracts advising partners or officers,
6.8.2.10 the details of any duties or responsibilities delegated to staff,
6.8.2.11 the controls in place to ensure that the procedures outlined in the procedure manual are carried out at all branch offices, and
6.8.2.12 the periodic review of these procedures in order to determine their continued adequacy and effectiveness.
6.8.3 An applicant who is not a member in good standing of a self regulatory body shall appoint at least one officer in the Province as a Compliance Officer, which individual shall be responsible for ensuring compliance with the procedure manual referred to in subsection 6.8.2. All Compliance officers must be approved by the superintendent.
Client Information
6.9.1 An applicant who is not a member in good standing of a self regulatory body shall submit for the approval of the superintendent its
6.9.1.1 advisory agreement,
6.9.1.2 fee schedule authorization,
6.9.1.3 client authorization form/trading agreement for discretionary and managed accounts, and
6.9.1.4 client information/risk disclosure statement,
with respect to commodity futures contracts, commodity futures options and commodity options.
6.9.2 Please note that section 31(l) of the Act, which requires that all prospective clients be furnished with an information statement in the prescribed form, has not been proclaimed. This will allow commodity contracts advisers to use their own agreements and statements, subject to the prior approval of a self regulatory body or the superintendent.
7.0 Commodity Contracts Advising Partner or Officer
Form
7.1.1 An applicant shall submit a completed Form 1-U-85, Uniform Application for Registration/Approval.
7.1.2 When completing question 3 of Form 1-U-85, Type of Registration or Approval Requested, the applicant shall check "Other (specify)" under the "Registered Representative or Salesperson Registered" section and shall specify one of the following:
7.1.2.1 Commodity Contracts Advising Partner (state whether applicant will be acting as a Commodity Trading Adviser, Commodity Trading Counsel or Commodity Trading Manager), or
7.1.2.2 Commodity Contracts Advising Officer (state title and whether applicant will be acting as a Commodity Trading Adviser, Commodity Trading Counsel or Commodity Trading Manager).
Fee
7.2 An applicant shall submit a fee of $500. Cheques must be made payable to the Minister of Finance.
Residence
7.3 An applicant shall comply with the residence requirements set out in section 18 of the Act.
Proficiency
7.4.1 An applicant shall have successfully completed the Canadian Futures Examination and the National Commodity Futures Examination.
7.4.2 An applicant shall have successfully completed the Partners/Directors/officers Qualifying Examination.
7.4.3 Notwithstanding subsections 7.4.1 and 7.4.2, an applicant who has not successfully completed the required examinations may still be registered provided the applicant has had such experience in the commodities industry as is acceptable to the superintendent.
7.4.4 An applicant for registration
7.4.4.1 as a Commodity Trading Adviser shall have been employed performing research in the analysis area of the commodities industry for at least two years,
7.4.4.2 as a Commodity Trading Counsel or a Commodity Trading Manager shall have been employed performing research in the analysis area of the commodities industry for at least three years.
8.0 Non Advising Partner, Director or officer of a Commodity Contracts Adviser or Branch Manager of a Commodity Contracts Adviser
Form
8.1.1 An applicant shall submit a completed Form 1-U-85, Uniform Application for Registration/Approval.
8.1.2 When completing question 3 of Form 1-U-85, Type of Registration or Approval Requested, the applicant shall check "Other (specify)" under the "Others" section and shall specify one of the following:
8.1.2.1 Non-Advising Partner of a Commodity Contracts Adviser,
8.1.2.2 Non-Advising Director of a Commodity Contracts Adviser, or
8.1.2.3 Non-Advising Officer of a Commodity Contracts Adviser (state title),
8.1.2.4 Branch Manager of a Commodity Contracts Adviser.
Residence
8.2 An applicant shall comply with the residence requirements set out in section 18 of the Act.
Proficiency
8.3.1 An applicant for approval as a partner, officer or branch manager or, if the applicant is not an individual, the individual responsible for discharging the obligations of the applicant as a partner, shall have successfully completed the Canadian Futures Examination and the National Commodity Futures Examination.
8.3.2 An applicant for approval as a partner, director or officer shall have successfully completed the Partners/Directors/Officers Qualifying Examination.
8.3.3 An applicant for approval as a branch manager shall have successfully completed the Branch Managers' Examination.
8.3.4 Notwithstanding subsections 8.3.1, 8.3.2 and 8.3.3, an applicant for approval who has not successfully completed the required examinations may still be approved provided the individual has had such experience in the commodities industry as may be acceptable to the superintendent.
9.0 Commodity Contracts Dealer - Conditions of Registration
Financial Statements
9.1.1 A registrant shall deliver to the superintendent within 120 days of the registrant's fiscal year end an audited annual financial statement and an audited Joint Regulatory Financial Questionnaire and Report,
9.1.2 A registrant who is not a member in good standing of a self regulatory body shall deliver to the superintendent
9.1.2.1 within 30 days of the end of each quarter in the registrant's fiscal year an unaudited quarterly financial statement and an unaudited Quarterly Summary Operations Questionnaire, and
9.1.2.2 within 15 days of the end of each month an unaudited Joint Industry Monthly Financial Report.
9.1.3 The statements and reports required in subsections 9.1.1 and 9.1.2 shall be prepared and, if required to be audited, audited in accordance with generally accepted accounting and auditing standards.
9.1.4 A registrant shall, at the request of the superintendent, provide additional capital or enter into a subordination agreement in the form required by the superintendent.
Minimum Capital
9.2 A registrant shall maintain net free capital equal to or greater than the total capital requirement calculated in accordance with Statement D of the Joint Regulatory Financial Questionnaire and Report.
Insurance
9.3 A registrant shall maintain the insurance arranged pursuant to subsection 3.6.1
Notice to Superintendent
9.4 A registrant who is not a member in good standing of a self regulatory body shall immediately notify the superintendent in writing
9.4.1 of any change in its auditor and shall submit to the superintendent a written direction to its new auditor instructing that auditor to conduct, at the registrant's expense, any audit required by the superintendent during the registrant's registration,
9.4.2 if the registrant's net free capital falls below the total capital requirement calculated in accordance with Statement D of the Joint Regulatory Financial Questionnaire and Report,
9.4.3 of any change in or claim made under the insurance required to be maintained by the registrant pursuant to section 9.3,
9.4.4 and obtain the superintendent's approval of any change in a Designated Commodity Supervisor approved by the superintendent pursuant to subsection 3.8.1,
9.4.5 and obtain the superintendent's approval of any change in the procedure manual or a Compliance officer approved by the superintendent pursuant to section 3.9, and
9.4.6 and obtain the superintendent's approval of any change in the client information documents approved by the superintendent pursuant to subsection 3.11.1.
Client Information
9.5 A registrant shall ensure that every prospective client, prior to opening an account, is furnished with and signs copies of all applicable client information documents approved by the superintendent pursuant to subsection 3.11.1.
Records
9.6 A registrant shall make available its books and records in an accurate and intelligible form within a reasonable time to the superintendent and to any other person lawfully entitled to examine them.
Compliance with Procedure Manual
9.7 A registrant shall comply with the procedures set out in the procedure manual approved by the superintendent pursuant to subsection 3.9.1.
Compliance with Policy Statement
9.8 A registrant shall comply with all applicable policy statements issued by the superintendent.
10.0 Commodity Contracts Adviser - Conditions of Registration
Financial Reports
10.1.1 A registrant shall deliver to the superintendent within 120 days of the registrant's fiscal year end an audited annual financial statement.
10.1.2 The statement required in subsection 10.1.1 shall be prepared and audited in accordance with generally accepted accounting and auditing standards.
10.1.3 A registrant shall, at the request of the superintendent, provide additional capital or enter into a subordination agreement in the form required by the superintendent.
Minimum Capital
10.2 A registrant shall maintain the minimum working capital required under section 6.5.
Insurance
10.3 A registrant shall maintain the insurance arranged pursuant to subsection 6.6.1
Notice to Superintendent
10.4 A registrant who is not a member in good standing of a self regulatory body shall immediately notify the superintendent in writing
10.4.1 of any change in its auditor and shall submit to the superintendent a written direction to its new auditor instructing that auditor to conduct, at the registrant's expense, any audit required by the superintendent during the registrant's registration,
10.4.2 if the registrant's working capital falls below the minimum capital required pursuant to section 6.5,
10.4.3 of any change in or claim made under the insurance required to be maintained by the registrant pursuant to section 10.3
10.4.4 and obtain the superintendent's approval of any change in a Designated Commodity Supervisor approved by the superintendent pursuant to subsection 6.7.1,
10.4.5 and obtain the superintendent's approval of any change in the procedure manual or a Compliance Officer approved by the superintendent pursuant to section 6.8, and
10.4.6 and obtain the superintendent's approval of any change in the client information documents approved by the superintendent pursuant to subsection 6.9.1.
Client Information
10.5 A registrant shall ensure that every prospective client, prior to opening an account, is furnished with and signs copies of all applicable client information documents approved by the superintendent pursuant to subsection 6.9.1.
Records
10.6 A registrant shall make available its books and records in an accurate and intelligible form within a reasonable time to the superintendent and to any other person lawfully entitled to examine them.
Compliance with Procedure Manual
10.7 A registrant shall comply with the procedures set out in the procedure manual approved by the superintendent pursuant to subsection 6.8.1.
Compliance with Policy Statements
10.8 A registrant shall comply with all applicable policy statements issued by the superintendent.
This Local Policy Statement shall come into effect on February 1, 1986.
DATED at Vancouver, British Columbia, this 16th day of December 1985.
R.L. Bullock
Superintendent of Brokers,
Insurance and Real Estate