Trade Names

GN-2200-21-002
Type: Rules Notice> Guidance Note
Rule connection:
IIROC Rules
Distribute internally to:
Legal and Compliance
Retail
Senior Management
Trading Desk
Institutional

Contact:

Business Conduct Compliance
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Executive Summary

Effective Date: December 31, 2021

This Guidance Note provides guidance on the use of trade names and describes the process for notifying IIROC of the use of trade names as required under Part E of Rule 2200.

  1. Use of trade names on materials used to communicate with the public

A Dealer Member (Dealer) that uses a trade name on materials used to communicate with the public must include its full legal name in size at least equal to that of the trade name. Materials used to communicate with the public include, but are not limited to the following:

  • letterhead,
  • business cards,
  • invoices,
  • trade confirmations,
  • monthly statements,
  • websites,
  • research reports,
  • advertisements, and
  • market letters.
  1. IIROC prohibitions on trade names

IIROC may prohibit a Dealer, or an Approved Person,1  from using any trade name that is contrary to the provisions of sections 2281, 2282 or 2283,2  is objectionable, or contrary to the public interest.

Reasons that IIROC will prohibit use of a trade name include:

  • the trade name is already in use by another Dealer or Approved Person,
  • the trade name suggests an affiliation with a Dealer or other financial institution where no such affiliation exists, and
  • the trade name is misleading as to the services that the Dealer or Approved Person provides or uses misrepresentations such as “guaranteed” in the name.
  1. Notifying IIROC of trade names

A Dealer must notify IIROC before it uses any trade name (other than the Dealer’s legal name), or transfers a trade name to another Dealer. All trade names used by an Approved Person and not owned by a Dealer should also be reported to IIROC. It is unnecessary to forward proof of registration; however IIROC recommends that the Dealer conduct the necessary due diligence and file that proof as a supporting document.

  1. Filings made through the National Registrations Database (NRD)

If an Approved Person carries on business for the Dealer under an individual trade name, the Dealer must reflect this information under item 1(3) of Form 33-109F4 – Registration of Individuals and Review of Permitted Individuals (Form 33-109F4). If the trade name is used with non-member activities, an additional disclosure must be made under item 10 of Form 33-109F4. The filing must indicate that the Dealer has approved the trade name. It must also describe how the Dealer has addressed any real or potential conflicts of interest and client confusion, resulting from the use of the trade name.

  1. Other filings

Provincial Securities Commissions must also be notified of any trade name being used by a Dealer. This notification is separate from that made to IIROC and must be filed with the Dealer’s principal regulator.

  1. Applicable rules

IIROC Rules this Guidance Note relates to:

  • section 2281,
  • section 2282, and
  • section 2283.
  1. Previous Guidance Note

This Guidance Note replaces MR0327 – Trade Names.

  1. Related documents

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

  • 1As defined in subsection 1201(2) of the IIROC Rules.
  • 2In this guidance, all rule references are to the IIROC Rules unless otherwise specified.