Tools for Notifying CIRO of Business Changes

Updated Tools and Templates

The following new or enhanced tools are designed to assist Members in preparing a comprehensive submission, making it possible for CIRO to commence its review without delay.

For Investment Dealer Members (ID Members)

1. Notice of Material Business Change (updated)

The Request for Business Change tool has been renamed Notice of Material Business Change and updated with more targeted questions regarding the ID Member’s proposal and the infrastructure that the ID Member has in place to ensure compliance with regulatory requirements.

2. Supplemental Tools & Checklists (new)

Below are newly developed tools and checklists designed to assist ID Members in preparing supplementary materials to support their Notice of Material Business Change.

1. Policy Review Checklist: This tool assists ID Members in assessing the impact of the proposed business change to their policies and procedures (P&P) and organize how those P&P changes are included in the Member’s Notice of Material Business Change.
2. Financial and Operational Tools & Checklists: These tools assist ID Members in preparing information and materials to support business changes that pertain to the following:
   • Fully Paid Lending
   • Uniform Subordinated Loan Agreement (USLA)
   • Introducing / Carrying Broker Agreements
     • Checklist of Type 1 IB / CB Arrangement
     • Checklist of Type 2 IB / CB Arrangement
     • Checklist of Type 3 IB / CB Arrangement
     • Checklist of Type 4 IB / CB Arrangement
   • Outsourcing Agreements
   • Internal Control Policies Rule Reference Tables

3. Notice of Ownership Change – Investment Dealer (new)

ID Members are required to notify CIRO in writing of any change of ownership of the Member or its holding companies, and in certain cases, obtain prior CIRO approval. We are pleased to introduce the Notice of Ownership Change (Investment Dealer) tool to assist ID Members in providing the required notice to CIRO.

For Mutual Fund Dealer Members (MFD Members)

1. Notice of Ownership Change – Mutual Fund Dealer (new)

Mutual Fund Dealer Rule 8.4 requires MFD Members to obtain prior approval from CIRO before permitting an investor, alone or together with its associates and affiliates, to own: (i) a “significant equity interest” in the Member; or (ii) special warrants or any other securities that are convertible or exchangeable at any time in the future, into a “significant equity interest” in the Member. We are pleased to introduce the Notice of Ownership Change tool to assist MFD Members in providing the required notice to CIRO.

Service Standards

In conjunction with the enhanced tools for Members, we are also pleased to announce newly established service standards associated with CIRO’s processing of new Member applications and material business changes for current Members. These service standards set out the expected response timelines by CIRO staff to Member (or applicant) submissions to CIRO for these two types of membership transactions.

For information on the service standards, please visit the Notice of Business Changes and Becoming a Dealer Member pages of the CIRO website.

Webcast

We will be publishing a webcast soon to discuss these developments in more detail. The webcast will be eligible for Continuing Education (CE) credits and an Education Bulletin will be issued once the webcast is available to view.