Acceptable Institutions and Acceptable Counterparties Database

21-0161
Type: Rules Notice> Technical
Rule connection:
Legacy DMR Rules
Distribute internally to:
Credit
Institutional
Internal Audit
Legal and Compliance
Operations
Regulatory Accounting
Senior Management

Contact:

James Elliott
Manager, Financial Compliance
Telephone:
Email:

The 2021 update of AI’s and AC’s is now available and can be accessed on-line at http://aiac.iiroc.ca.

The purpose of the Domestic and Foreign Acceptable Institutions (AI) and Acceptable Counterparties (AC) database is to assist all Dealer Members in the coding of customer accounts that qualify as an AI or AC as defined in the General Notes and Definitions of Form #1.

The AI/AC database is managed and updated yearly in the summer months. The “List of Recognized Exchanges and Associations” and the “List of Basel Accord Countries” are updated on an ongoing basis. Dealer Members are responsible for counterparty risk and must ensure proper account coding for margin calculations, custody arrangements and financial reporting.

This AI/AC database is not intended to be exhaustive. Dealer Members that enter into counterparty arrangements with entities not listed on the AI/AC database are not prohibited from doing so. Instead the Dealer Member is required to maintain supporting records to substantiate the net worth of any entity, based on latest audited financial information, the AI or AC classification for regulatory purposes. This information is required to be made available to IIROC examiners and/or the external auditors of the Dealer Member immediately upon inspection.

IIROC takes no responsibility for the omission or errors in the financial information used to compile the AI/AC list that is obtained from reliable third party sources disclosed in the reference sources of the database. Dealer Members are advised that it is their responsibility to monitor counterparty transaction risk and concentration and take immediate remedial action on any publicly reported information that may adversely affect the financial circumstances of any entity coded as an AI/AC on their books and records. Dealer Members should also refer to IIROC Notice 09-171 dated June 11, 2009, on guidance on credit risk management.

The following features are available to Dealer Members accessing the AI/AC internet database application.

  • Quick on-line searches of an entities’ current record of net worth and AI/AC categorization
  • 5 year record history of published AI/AC listings
  • 9 different types of reports can be viewed printed or exported to excel or PDF. They include:
    • AI/AC by Name
    • AI/AC by Category
    • Counterparties upgraded to AI
    • Counterparties downgraded to AC List
    • Counterparties added to AI/AC List
    • Counterparties Removed from AI/AC List
    • List of Recognized Exchanges and Associations
    • List of “Basel Accord Countries”
    • Reference Sources