Investor Alert:
CIRO is issuing a warning to Canadian investors regarding Canada Token Trade.
IIROC requirements (collectively, Rules) set out various circumstances where a signature is required to evidence:
Our Rules do not prescribe the specific form that a signature must take. Dealers may choose the form of signature, for example wet signatures2 or electronic signatures/e-signatures3 (including digital signatures4 ), that they will require or accept. Regardless of their choice, Dealers should have appropriate policies and procedures (P&Ps) in place to meet our signature requirements and act in good faith in applying those P&Ps. Dealers are reminded to consider other applicable laws relating to signatures on documents when establishing their P&Ps.
We have heard that, in some circumstances, Dealers have inappropriately delayed transfers due to their wet signature policy. Where a Dealer chooses to require wet signatures to fulfill our signature requirements, we expect the Dealer, as in all cases, to act in good faith and not delay an account transfer because of its own wet signature policy. In cases where a Dealer requires wet signatures and receives an account transfer request from another registrant with an e-signature policy, it should, as soon as possible:
Also, we expect a Dealer’s signature policy to be applied consistently. For example, Dealers should not have different signature policies for transfers-in and transfers-out.
Where a Dealer chooses to require e-signatures to fulfill the signature requirements, its P&Ps and practices must be consistent with all applicable laws. For example, the Uniform Electronic Commerce Act (Canada)5 , the Personal Information Protection and Electronic Documents Act, provincial legislation related to electronic commerce6 and any other applicable laws relating to the subject matter for which a signature requirement relates7 .
Dealers should be mindful that applicable laws require a wet signature be used for certain contracts and documents such as certain Powers of Attorney, wills or trusts.
This Guidance replaces Member Regulation Notice MR0177 – Electronic Signatures, dated November 18, 2002, effective immediately.
This Guidance relates to the following IIROC Rules8 :