Client Relationship Model (“CRM”) — Frequently Asked Questions

Attached is a revised version of the IIROC CRM FAQs document.  This version replaces the previous FAQ document issued on December 16, 2015 as part of IIROC Rules Notice 15-0288. The following revised/new FAQs have been included in this version:

• FAQ #12 which provides guidance on the calculation and disclosure of individual position cost information for positions acquired through exercising a conversion / exercise / exchange feature embedded within a convertible / exercisable / exchangeable security
• FAQ #13 which provides revised guidance on the calculation and disclosure of individual position cost information for futures contract positions
• FAQ #14 which provides a revised response to whether "not determinable" disclosure within the account statement is acceptable when position cost is unavailable
• FAQ #20 which details the circumstances under which an annual performance report does not have to be issued
• FAQ #22 which details the circumstances under which an annual fee / charge report does not have to be issued
• FAQ #23 which details the general disclosure approach to be used for third-party compensation amounts included within the annual fee / charge report
• FAQ #24 which relieves Dealer Members from the requirement to provide dollar amount information within notes included in the annual fee / charge report under certain circumstances
• FAQ #25 which details when amounts received under a referral arrangement involving registerable services with another registered firm need not be disclosed within any annual account fee / charge report the referring Dealer Member provides to the client
• FAQ #26 which confirms that referral fee amounts received under a referral arrangement involving non-registerable services need not be disclosed within an annual fee / charge report provided to the client
• FAQ #27 which details certain outsourced service fee amounts received under a back office sharing arrangement with another registered firm that need not be disclosed within an annual fee / charge report provided to the client
• FAQ #28 which details the approach to be used for the disclosure of the commission portion of new issue fees, where applicable, within the annual fee / charge report

Questions concerning this notice and the attached frequently asked questions document should be directed to:

Richard J.  Corner
Vice President and Chief Policy Advisor, Member Regulation
Investment Industry Regulatory Organization of Canada
Suite 2000, 121 King Street West
Toronto, Ontario, M5H 3T9
[email protected]