Purpose
The purpose of this Guidance Note is to advise Dealer Members (Dealers) as to the margin treatment of debit balances arising in registered accounts, such as a registered retirement savings plan (RRSP), registered education savings account and registered disability savings plan.
Margin treatment
In circumstances in which there arises a debit balance a registered account, the following margin requirements should apply:
where the debit balance is identifiable to a particular security transaction, the cash account rulesas set out in Form 1, Part II – Schedule 4, Notes and instructions apply to the transaction,
where the debit balance arises from items that are contemplated by IIROC requirements and securities laws and are set out in the Trust Agreement between the Dealer and the individual planholder, such as the payment of its administrative fees, which empowers a trustee to liquidate trust property, then the margin account rulesshould be applied,
where the debit balance arises from other items not considered above, the balance should be treated as unsecuredand 100% margin provided.
Applicable Rules
This Guidance Note relates to the following IIROC Rules:
Form 1, Part II – Schedule 4 Notes and instructions.