Investor Alert:
CIRO is issuing a warning to Canadian investors regarding Canada Token Trade.
Effective Date: December 31, 2021
This Guidance Note provides guidance on the use of trade names and describes the process for notifying IIROC of the use of trade names as required under Part E of Rule 2200.
A Dealer Member (Dealer) that uses a trade name on materials used to communicate with the public must include its full legal name in size at least equal to that of the trade name. Materials used to communicate with the public include, but are not limited to the following:
IIROC may prohibit a Dealer, or an Approved Person,1 from using any trade name that is contrary to the provisions of sections 2281, 2282 or 2283,2 is objectionable, or contrary to the public interest.
Reasons that IIROC will prohibit use of a trade name include:
A Dealer must notify IIROC before it uses any trade name (other than the Dealer’s legal name), or transfers a trade name to another Dealer. All trade names used by an Approved Person and not owned by a Dealer should also be reported to IIROC. It is unnecessary to forward proof of registration; however IIROC recommends that the Dealer conduct the necessary due diligence and file that proof as a supporting document.
If an Approved Person carries on business for the Dealer under an individual trade name, the Dealer must reflect this information under item 1(3) of Form 33-109F4 – Registration of Individuals and Review of Permitted Individuals (Form 33-109F4). If the trade name is used with non-member activities, an additional disclosure must be made under item 10 of Form 33-109F4. The filing must indicate that the Dealer has approved the trade name. It must also describe how the Dealer has addressed any real or potential conflicts of interest and client confusion, resulting from the use of the trade name.
Provincial Securities Commissions must also be notified of any trade name being used by a Dealer. This notification is separate from that made to IIROC and must be filed with the Dealer’s principal regulator.
IIROC Rules this Guidance Note relates to:
This Guidance Note replaces MR0327 – Trade Names.
This Guidance Note was published under Notice 21-0190 - IIROC Rules, Form 1 and Guidance.