Investor Alert:
CIRO is issuing a warning to Canadian investors regarding Canada Token Trade.
Effective Date: December 31, 2021
Applicants seeing approval in the category of Investment Representative or Registered Representative dealing with retail clients must complete a training program while employed with the sponsoring Dealer Member (Dealer) before applying.
The training program must be at least 30 days for those applying as Investment Representatives and at least 90 days for those applying as Registered Representatives.
This Guidance sets out our expectations on the “no client contact” during the training programs.1
Dealers may also reference subsection 2216(16) which provides further information on activities that non-registered personnel may provide.
Dealers must ensure that the candidates in either the 30 or 90-day training program do not engage in any activities requiring approval. This means that applicants in the training program are not permitted to have contact with clients or prospective clients in obtaining, taking or soliciting orders for or advising on trades in securities, as they are not yet registered. Furthermore, such applicants must not receive commission splits as any part of their compensation. In addition, applicants cannot:
Dealers may may also reference subsection 2216(15) which provides further information on activities that non-registered personnel may not provide.
Registered Representatives (Mutual Funds only) on the IIROC platform may continue to deal with existing and new mutual fund clients only during the training program. It is IIROC’s expectation however that individuals are devoting real and meaningful time to the training during this period and their ongoing work is not interfering with or overtaking the required training.
IIROC Rules this Guidance Note relates to:
This Guidance Note replaces MR057 – Permissible Activities for those taking the 30 and 90 Day Training Programs required under Policy 6, Part 1.
This Guidance Note was published under Notice 21-0190 - IIROC Rules, Form 1 and Guidance.