Investor Alert:
CIRO is issuing a warning to Canadian investors regarding Canada Token Trade.
Effective Date: December 31, 2021
The purpose of this Guidance Note is to advise Dealer Members (Dealers) of IIROC’s applicable requirements1 regarding non-securities business activities with particular reference to the distribution of insurance products by licensed agents.
Section 2215 of the IIROC Rules states:
IIROC staff considered whether to permit a Dealer to engage directly in the distribution of insurance products by its employees (licensed insurance agents), where permitted by provincial legislation and insurance regulators.
The following concerns have been identified:
Based on the foregoing, IIROC staff have taken the position that it will not recommend any Dealer firm application to District Council to diversify business activities involving the distribution of insurance products by employing licensed insurance agents.2
IIROC Rules this Guidance Note relates to:
This Guidance Note replaces MR0278 – Diversification – Distribution of Insurance Products.
This Guidance Note was published under Notice 21-0190 - IIROC Rules, Form 1 and Guidance.