2602. Proficiency requirements for Approved Persons and approved investors

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    1. An Approved Person must not perform an activity that requires approval unless the Approved Person has the education, training and experience that a reasonable person would consider necessary to perform the activity competently, including understanding the structure, features and risks of each security the Approved Person recommends.  

    2. The Dealer Member must ensure that an individual does not perform an activity that requires IIROC approval unless the individual has the education, training and experience that a reasonable person would consider necessary to perform the activity competently, including understanding the structure, features and risks of each security the individual recommends.

    3. Each applicant in an Approved Person category or approved investor category must meet the proficiency requirements set out below for that category unless an exemption has been granted from the applicable proficiency requirements before IIROC will grant approval. Unless otherwise stated, the Canadian Securities Institute administers the courses and examinations noted below.

      Registered Representatives and Investment Representatives 

      • Registered Representative dealing with retail clients (other than Registered Representatives dealing in options, futures contracts and  futures contract options or dealing in mutual funds only)
      • Registered Representative dealing with institutional clients (other than Registered Representative dealing in options, futures contracts and futures contract options or dealing in mutual funds only)
      • Registered Representative dealing in options with retail clients
      • Registered Representative dealing in options with institutional clients
      • Registered Representative dealing in futures contracts and futures contract options with retail or institutional clients
      • Registered Representative dealing in mutual funds only
      • Investment Representative dealing with retail clients (other than Investment Representative dealing in options, futures contracts and  futures contract options or dealing in mutual funds only)
      • Investment Representative dealing with institutional clients (other than Investment Representative dealing in options, futures contracts and  futures contract options or dealing in mutual funds only)
      • Investment Representative dealing in options with retail clients
      • Investment Representative dealing in options with institutional clients
      • Investment Representative dealing in futures contracts or futures contract options with retail or institutional clients 
      • Investment Representative dealing in mutual funds only

      Associate Portfolio Managers and Portfolio Managers

      • Associate Portfolio Managers providing discretionary portfolio management for managed accounts
      • Portfolio Managers providing discretionary portfolio management for managed accounts

      Traders

      • Trader
      • Trader on the Montréal Exchange

      Supervisors – Retail or Institutional

      • Supervisor of Registered Representatives or Investment Representatives (other than supervising options or futures contracts and  futures contract options)
      • Supervisor of Registered Representatives or Investment Representatives dealing with clients in options
      • Supervisor of Registered Representatives or Investment Representatives dealing with clients in futures contracts and futures contract options

      Designated Supervisors

      • Supervisor designated to be responsible for the opening of new accounts and supervision of account activity 
      • Supervisor designated to be responsible for the supervision of discretionary accounts
      • Supervisor designated to be responsible for the supervision of managed accounts 
      • Supervisor designated to be responsible for the supervision of options accounts 
      • Supervisor designated to be responsible for the supervision of futures contract /futures contract options accounts
      • Supervisor designated to be responsible for the pre-approval of advertising, sales literature and correspondence
      • Supervisor designated to be responsible for the supervision of research reports

      Executives and Directors

      • Executive (including Ultimate Designated Person)
      • Director
      • Chief Financial Officer
      • Chief Compliance Officer

      Approved investors

      • approved investor

     

    Approved Persons category

    Courses completed before approval

    Courses to be completed after approval

    Experience and other requirements

    Registered Representatives and Investment Representatives

    1. Registered Representative dealing with retail clients (other than Registered Representatives dealing in options, futures contracts and futures contract options or dealing in mutual funds only) 
    • Canadian Securities Course or, Level I or any higher level of the CFA Program administered by the CFA Institute, and
      Conduct and Practices Handbook Course  
    • and
    • 90-day training program after completion of the Canadian Securities Course or CFA Program Level I or any higher level. The Dealer Member must employ the applicant full time during this program.

    OR

    • New Entrants Course, if previously registered with a recognized foreign self-regulatory organization in a similar capacity within three years before requesting approval
    • Wealth Management Essentials Course within 30 months after approval date as a Registered Representative
    • Six months of supervision and supervisory reporting from initial approval date as a Registered Representative
    1. Registered Representative dealing with institutional clients (other than Registered Representatives dealing in options, futures contracts and futures contract options or dealing in mutual funds only) 
    • Canadian Securities Course or, Level I or any higher level of the CFA Program administered by the CFA Institute, and

      Conduct and Practices Handbook Course 

    OR

    • New Entrants Course, if previously registered with a recognized foreign self-regulatory organization in a similar capacity within three years before requesting approval

     

     
    1. Registered Representative dealing in options with retail clients
    • The proficiency requirements of a Registered Representative dealing with retail clients under clause 2602(3)(i),

    AND

    • Both the Derivatives Fundamentals Course and the Options Licensing Course 

      or

      Derivatives Fundamentals and Options Licensing Course 

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority in a similar capacity and dealing in options within three years before requesting approval, and

      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority

     

     
    1. Registered Representative dealing in options with institutional clients
    • The proficiency requirements of a Registered Representative dealing with institutional clients under clause 2602(3) (ii),

    AND

    • Both the Derivatives Fundamentals Course and the Options Licensing Course

      or

      Derivatives Fundamentals and Options Licensing Course 

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority in a similar capacity and dealing in options within three years before requesting approval, and

      Securities Industry Essentials Examination and  Series 7 Examination administered by the Financial Industry Regulatory Authority

     

     
    1. Registered Representative dealing with retail clients or institutional clients dealing in futures contracts or futures contract options 
    • Futures Licensing Course, and

      Conduct and Practices Handbook Course

    AND

    • Derivatives Fundamentals Course

      or

      Derivatives Fundamentals and Options Licensing Course 

      or 

      Series 3 Examination administered by the Financial Industry Regulatory Authority (on behalf of the National Futures Association) , if previously registered with the National Futures Association in a similar capacity and dealing in futures within three years before requesting approval

     

     
    1. Registered Representative dealing in mutual funds only
    • Canadian Securities Course 
    • or 
    • Canadian Investment Funds Course administered by the Investment Funds Institute of Canada 
    • or

      Investment Funds in Canada Course
    • Canadian Securities Course and Conduct and Practices Handbook Course within 270 days of initial approval,

     and

    • 90-day training program within 18 months of initial approval
    • The individual must upgrade to Registered Representative within 18 months of initial approval
    1. Investment Representative dealing with retail clients (other than Investment Representatives dealing in options, futures contracts and futures contract options or dealing in mutual funds only)
    • Canadian Securities Course, or Level I or any higher level of the CFA Program administered by the CFA Institute, and

      Conduct and Practices Handbook Course

    and 

    • 30-day training program after completing the Canadian Securities Course or Level I or any higher level of the CFA Program. The Dealer Member must employ the applicant full-time during this program

    OR

    • New Entrants Course, if previously registered with a recognized foreign self-regulatory organization in a similar capacity within three years before requesting approval

     

    • Six months of supervision and supervisory reporting from initial approval date as an Investment Representative
    1. Investment Representative dealing with institutional clients (other than Investment Representatives dealing in options, futures contracts and futures contract options or dealing in mutual funds only) 
    • Canadian Securities Course, or Level I or any higher level of the CFA Program administered by the CFA Institute, and 

      Conduct and Practices Handbook Course

    OR

    • New Entrants Course, if previously registered with a recognized foreign self-regulatory organization in a similar capacity within three years before requesting approval

     

     
    1. Investment Representative dealing in options with retail clients
    • The proficiency requirements of an Investment Representative dealing with retail clients under clause 2602(3)(vii),

    AND

    • Both the Derivatives Fundamentals Course and the Options Licensing Course 

    or

    • Derivatives Fundamentals and Options Licensing Course, 

    or

    • New Entrants Course, if previously registered with the Financial Industry Regulatory Authority in a similar capacity and dealing in options within three years before requesting approval,
      and 
      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority

     

     
    1. Investment Representative dealing in options with institutional clients
    • The proficiency requirements for an Investment Representative dealing with institutional clients under clause 2602(3)(viii), 

    AND

    • Both the Derivatives Fundamentals Course and the Options Licensing Course 

      or 

      Derivatives Fundamentals and Options Licensing Course 

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority in a similar capacity and  dealing in options within three years before requesting approval, and

      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority

     

     
    1. Investment Representative dealing in futures contracts or futures contract options with retail or institutional clients
    • Futures Licensing Course, and
    • Conduct and Practices Handbook Course

    AND 

    • Derivatives Fundamentals Course 

      or

      Derivatives Fundamentals and Options Licensing Course

      or 

      Series 3 Examination administered by the Financial Industry Regulatory Authority (on behalf of the National Futures Association) , if previously registered with the National Futures Association in a similar capacity and dealing in futures within three years before requesting approval

     

     
    1. Investment Representative dealing in mutual funds only
    • Canadian Securities Course 

      or 

      Canadian Investment Funds Course administered by the Investment Funds Institute of Canada

      or

      Investment Funds in Canada Course 
    • Canadian Securities Course and Conduct and Practices Handbook Course within 270 days of initial approval, 

    and

    • 30-day training program within 18 months of initial approval
    • The individual must upgrade to Investment Representative within 18 months of initial approval

    Associate Portfolio Managers and Portfolio Managers

    1. Associate Portfolio Managers providing discretionary portfolio management  for managed accounts  
    • Conduct and Practices Handbook Course, 

    AND

    • Canadian Investment Manager Designation

      or

      Chartered Investment Manager Designation

      or

      CFA Level I  or any higher level of the CFA Program administered by the CFA Institute

    AND

    • If managing accounts in options:
    • Both the Derivatives Fundamentals Course and the Options Licensing Course

      or 

      Derivatives Fundamentals and Options Licensing Course

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority in a similar capacity and dealing in options within three years before requesting approval, and

      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority

    AND

    • If managing accounts in futures contracts/futures contract options,
    • Futures Licensing Course, 

    AND

    • Derivatives Fundamentals Course

      or

      Derivatives Fundamentals and Options Licensing Course 

      or 

      Series 3 Examination administered by the Financial Industry Regulatory Authority (on behalf of the National Futures Association) , if previously registered with the National Futures Association in a similar capacity and dealing in futures within three years before requesting approval
     
    • Two years of relevant investment management experience acceptable to IIROC within three years before requesting approval
    1. Portfolio Managers providing discretionary portfolio management for managed accounts 
    • Conduct and Practices Handbook Course, 

    AND

    • Canadian Investment Manager Designation

      or

      Chartered Investment Manager Designation 

      or

      CFA Charter administered by the CFA Institute 

    AND 

    • If managing accounts in options:
    • Both the Derivatives Fundamentals Course and the Options Licensing Course 

      or

      Derivatives Fundamentals and Options Licensing Course

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority in a similar capacity and dealing in options within three years before requesting approval, 

      and 

      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority 

    AND

    • If managing accounts in futures contracts/futures contract options:
    • Futures Licensing Course

    AND

    • Derivatives Fundamentals Course

      or

      Derivatives Fundamentals and Options Licensing Course 

      or 

      Series 3 Examination administered by the Financial Industry Regulatory Authority (on behalf of the National Futures Association) if previously registered with National Futures Association in a similar capacity and dealing in futures within three years before requesting approval
     

    If Canadian Investment Manager Designation or Chartered Investment Manager Designation is completed:

    • at least four years of relevant investment management experience; one year of which was gained within the three years before requesting approval acceptable to IIROC 

      or

      If CFA Charter is completed, at least one year of relevant  investment management experience within the three years before requesting approval acceptable to IIROC

    Traders

    1. Trader 
    • Trader Training Course, unless otherwise determined by the Marketplace on which the Trader will be trading
       
    1. Trader on the Montréal Exchange
    • Proficiency requirements determined to be acceptable by the Montréal Exchange
       

    Supervisors – Retail or Institutional

    1. Supervisor of Registered Representatives or Investment Representatives (other than supervising options or futures contracts and futures contract options)
    • Investment Dealer Supervisors Course

    AND

    • Canadian Securities Course

      or 

      CFA Level I  or any higher level of the CFA Program administered by the CFA Institute 
    • and 
    • Conduct and Practices Handbook Course 

      or 

      New Entrants Course, if previously registered with a recognized foreign self-regulatory organization or an investment dealer  within three years before requesting approval
     
    • Two years of relevant experience working for an investment dealer

      or 

      Two years of relevant experience working for a Mutual Fund Dealer, portfolio manager or entity governed by a recognized foreign self-regulatory organization 

      or 

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor of Registered Representatives or Investment Representatives dealing with clients in options
    • Options Supervisors Course, and

      Conduct and Practices
      Handbook Course

    AND

    • Both the Derivatives Fundamentals Course and the Options Licensing Course

      or

      Derivatives Fundamentals and Options Licensing Course, 

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority or an investment dealer and dealing in options within three years before requesting approval, and

      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority 
     
    • Two years of relevant experience working for an investment dealer 

      or 

      Two years of relevant experience working for an entity governed by a recognized foreign self-regulatory organization

      or 

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor of Registered Representatives or Investment Representatives dealing with clients in futures contracts and futures contract options  
    • Canadian Commodity Supervisors Exam

      and 

      Futures Licensing Course

      and 

      Conduct and Practices Handbook Course

    AND 

    • Derivatives Fundamentals Course

      or 

      Derivatives Fundamentals and Options Licensing Course

      or

      Series 3 Examination administered by the Financial Industry Regulatory Authority (on behalf of the National Futures Association), if previously registered with National Futures Association or an investment dealer and dealing in futures within three years before requesting approval
     
    • Two years of relevant experience working for an investment dealer

      or 

      Two years of relevant experience working for an  entity governed by a recognized foreign self-regulatory organization 

      or 

      Such other equivalent experience acceptable to the applicable District Council

    Designated Supervisors

    1. Supervisor designated to be responsible for the opening of new accounts and supervision of account activity 
    • Investment Dealer Supervisors Course 
     
    • Two years of relevant experience working for an investment dealer 

      or 

      Two years of relevant experience working for an  entity governed by a recognized foreign self-regulatory organization 

      or 

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor designated to be responsible for the supervision of discretionary accounts 
    • Investment Dealer Supervisors Course
     
    • Two years of relevant experience working for an investment dealer 

      or 

      Two years of relevant  experience working for an entity governed by a recognized foreign self-regulatory organization 

      or 

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor designated to be responsible for the supervision of managed accounts 
    • Canadian Investment Manager Designation 

      or

      Chartered Investment Manager Designation 

      or

      CFA Charter administered by the CFA Institute 

    AND 

    • If supervising  accounts in options, the applicable proficiency requirements to trade and supervise options, as specified under clause 2602(3)(xviii) 

    AND

    • If supervising accounts in futures contracts/futures contract options, the applicable  proficiencies to trade and supervise futures, as specified under clause 2602(3)(xix)
     
    • If completed Canadian Investment Manager Designation or Chartered Investment Manager Designation:

      at least four years of relevant investment management experience; one year of which was gained within the three years before requesting approval 

      or  

      If completed CFA Charter:

      at least one year of relevant  investment management experience within the three years before requesting approval
    1. Supervisor designated to be responsible for the supervision of options accounts
    • Options  Supervisors Course, and

      Both the Derivatives Fundamentals Course and the Options Licensing Course 

      or

      Derivatives Fundamentals and Options Licensing Course 

      or

      New Entrants Course, if previously registered with the Financial Industry Regulatory Authority or an investment dealer and dealing in options within three years before requesting approval, and

      Securities Industry Essentials Examination and Series 7 Examination administered by the Financial Industry Regulatory Authority 
     
    • Two years of relevant experience working for an investment dealer 

      or 

      Two years of relevant  experience working for an entity governed by a recognized foreign self-regulatory organization 

      or  

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor designated to be responsible for the supervision of futures contract/futures contract options accounts 
    • Canadian Commodity Supervisors Exam 

      and 

      Futures Licensing Course,

    AND 

    • Derivatives Fundamentals Course

      or

      Derivatives Fundamentals and Options Licensing Course 

      or 

      Series 3 Examination administered by the Financial Industry Regulatory Authority (on behalf of the National Futures Association) if previously registered with the National Futures Association or an investment dealer and dealing in futures within three years before requesting approval 
     
    • Two years of relevant experience working for an investment dealer 

      or 

      Two years of relevant supervisory or compliance experience working for an  entity governed by a recognized foreign self-regulatory organization

      or  

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor designated to be responsible for the pre-approval of  advertising, sales literature and correspondence
    • Investment Dealer Supervisors Course
     
    • Two years of relevant experience working for an investment dealer 

      or 

      Two years of relevant experience working for an  entity governed by a recognized foreign self-regulatory organization

      or 

      Such other equivalent experience acceptable to the applicable District Council
    1. Supervisor designated to be responsible for the supervision of  research reports 
    • Three levels of the CFA 

      or 

      CFA Charter administered by the CFA Institute 

      or 

      Other appropriate qualifications acceptable to the applicable District Council
     
    • Two years of relevant experience working for an investment dealer 

      or

      Two years of relevant experience working for an  entity governed by a recognized foreign self-regulatory organization

      or 

      Such other equivalent experience acceptable to the applicable District Council

    Executives and Directors

    1. Executive (including Ultimate Designated Person)
    • Partners, Directors and Senior Officers Course 

    AND

    • If seeking approval in a trading or advising category, the applicable proficiency requirements in that category 

    AND

    • If seeking approval as a Supervisor, the applicable proficiency requirements in that category
       
    1. Director

    An industry Director must complete:

    • Partners, Directors and Senior Officers Course, 

    AND

    • If seeking approval in a trading or advising category, the applicable proficiency requirements in that category, 

    AND 

    • If seeking approval as a Supervisor, the applicable proficiency requirements in that category
     

    A non-industry Director that owns or controls a voting interest of  10% or more, directly or indirectly, must complete:

    • The Partners, Directors and Senior Officers Course
       
    1. Chief Financial Officer
    • Partners, Directors and Senior Officers Course 

      and

      Chief Financial Officers Qualifying Examination  

    AND 

    • If seeking approval in a trading or advising category, the applicable proficiency requirements in that category, 

    AND

    • If seeking approval as a Supervisor, the applicable proficiency requirements in that category
     
    • A financial accounting designation, finance related university degree or diploma or equivalent work experience as may be acceptable to IIROC
    1. Chief Compliance Officer
    • Partners, Directors and Senior Officers Course, 

      and

      Chief Compliance Officers Qualifying Examination 

    AND 

    • If seeking approval in a trading or advising category, the applicable proficiency requirements in that category, 

    AND

    • If seeking approval as a Supervisor, the applicable proficiency requirements in that category
     
    • Five years working for an investment dealer or registered advisor, with at least three years in a compliance or supervisory capacity

      or 

      Three years providing professional services in the securities industry, with at least 12 months experience working at an investment dealer or registered advisor in a compliance or supervisory capacity

    Approved investor

    1. approved investor (under subsections 2555(2) and 2555(3)) 
    • Partners, Directors and Senior Officers Course 
       

    2603. – 2624.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.