Friday November 7 2014

News Source: Global Exchanges

Focus: Brokers

Type: General




On 10th September 2014, the Board of Directors of the Investment Industry Regulatory Organization of Canada (IIROC) approved the publication for comment of the proposed amendments to Dealer Member Rule section 6.6 and corollary amendments.

IIROC are proposing to make amendments to Dealer Member Rule section 6.6. If approved and implemented, these amendments would revise the minimum common ownership and board of directors membership percentages that trigger the cross-guarantee requirement from their current level of “at least 20%” to “greater than 50%”.

Corollary amendments are also being proposed to:

  • Dealer Member Rule section 1.1 to clarify the application of the “Holding Company” definition; and
  • Dealer Member Rule subsection 16.2(iv) to, consistent with the proposed amendments to Dealer Member Rule 6.6, narrow the scope of situations where a Dealer Member can file regulatory financial information with IIROC that is consolidated with the information of another commonly-owned Dealer Member, to those situations where the Dealer Members are more than 50% commonly owned.

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