Mail insurance coverage

GN-4400-21-001
Type: Rules Notice> Guidance Note
Rule connection:
IIROC Rules
Distribute internally to:
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Executive Summary

Effective Date: December 31, 2021

IIROC is publishing guidance in response to a number of Dealer Member (Dealer) enquiries about registered mail coverage.1

  • 1In this Guidance, all rule references are to the IIROC Rules unless otherwise specified.
  1. Frequently Asked Questions

Q: Can mail insurance be part of the Financial Institution Bond (FIB) coverage or does it have to be the subject of a separate coverage?

A:  The registered mail coverage can be put into place via a separate policy or through a rider to the FIB Form 14.  The amount of the required coverage has to be enough to cover actual usage with no stated minimums.

Q:  Can mail insurance be part of a global coverage?

A: Yes, mail insurance can be part of a global coverage.  If so, however, the mail coverage should be subject to the same global policy provisions noted in section 4462.

Q:  Is mail insurance subject to the requirement to provide IIROC with a 30-day cancellation notice?

A: Yes, in accordance to section 4463, mail coverage should be treated no differently than normal FIB coverage.

Q:  Can a Dealer be exempted from the registered mail insurance requirement?

A: Yes, in accordance to section 4455, IIROC may exempt a Dealer from the requirement if the Dealer delivers a written undertaking to IIROC that it will not use the mail for out-going shipments of securities.

  1. Applicable Rules

IIROC Rules this Guidance Note relates to:

  • section 4455,
  • section 4462, and
  • section 4463.
  1. Previous Guidance Note

This Guidance Note replaces MR0219 - Mail Insurance Coverage.

  1. Related Documents

This Guidance Note was published under Notice 21-0190 - IIROC Rules, Form 1 and Guidance.

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