Notice of Request for Comment – Proposed Amendments Relating to the Cross-Guarantee – Investment Industry Regulatory Organization of Canada (IIROC)

Market Regulation Document Type
IIROC rule review

IIROC is publishing for public comment proposed amendments to Dealer Member Rule section 6.6 and corollary amendments to section 1.1 and subsection 16.2(iv) relating to the cross-guarantee requirement (“proposed amendments”). The objectives of the proposed amendments are to encourage responsible behaviour by Dealer Members and reduce the risk of insolvency and/or loss of client property, to ensure (in the event of a Dealer Member insolvency) that all dealers in the commonly-owned corporate group that includes the defaulting Dealer Member pay first, and to demonstrate the industry’s willingness to self-impose prudential rules in order to minimize the risk that the industry would have to bear the cost of client losses caused by risky or inappropriate behaviour by commonly-owned dealer groups. A copy of the IIROC Notice including the amended documents was also published on our website at The comment period ends on February 4, 2015.