Margin treatment of registered account debit balances

Type: Rules Notice> Guidance Note
Rule connection:
Distribute internally to:
Corporate Finance
Regulatory Accounting
Senior Management


Member Regulation Policy
  1. Purpose
    The purpose of this Guidance Note is to advise Dealer Members (Dealers) as to the margin treatment of debit balances arising in registered accounts, such as a registered retirement savings plan (RRSP), registered education savings account and registered disability savings plan.
  2. Margin treatment
    In circumstances in which there arises a debit balance a registered account, the following margin requirements should apply:
    1. where the debit balance is identifiable to a particular security transaction, the cash account rules as set out in Form 1, Part II – Schedule 4, Notes and instructions apply to the transaction,
    2. where the debit balance arises from items that are contemplated by IIROC requirements and securities laws and are set out in the Trust Agreement between the Dealer and the individual planholder, such as the payment of its administrative fees, which empowers a trustee to liquidate trust property, then the margin account rules should be applied,
    3. where the debit balance arises from other items not considered above, the balance should be treated as unsecured and 100% margin provided.
  3. Applicable Rules
    This Guidance Note relates to the following IIROC Rules:
    • Form 1, Part II – Schedule 4 Notes and instructions.
  4. Previous Guidance Note
    This Guidance Note replaces C-57 RRSP Debit Balances (March 11, 1993).
  5. Related documents
    This Guidance Note was published under Notice 22-0149.