3115. Personal financial dealings

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    1. An employee or Approved Person of a Dealer Member must not, directly or indirectly, engage in any personal financial dealings with clients.
    2. Personal financial dealings include, but are not limited to, the following types of dealings:
      1. Accepting any consideration
        1. Except as described in paragraphs 3115(2)(i)(a)(I) and 3115(2)(i)(a)(II) accepting any consideration, including remuneration, gratuity or benefit, from any person other than the Dealer Member for any activities conducted on behalf of a client.
          1. Consideration that is non-monetary, of minimal value, and infrequent such that it will not cause a reasonable person to question whether it created a conflict of interest or otherwise improperly influenced the Dealer Member or its employees would not be considered to be consideration for the purposes of sub-clause 3115(2)(i)(a).
          2. Compensation received from a client in exchange for services provided through an approved outside business activity would not be considered to be consideration for the purpose of sub-clause 3115(2)(i)(a).
      2. Settlement agreements without the Dealer Member’s approval
        1. Entering into a settlement agreement without the Dealer Member’s prior written consent, or
        2. Paying for client account losses out of personal funds without the Dealer Member’s prior written consent.
      3. Borrowing from clients
        1. Borrowing money or receiving a guarantee in relation to borrowing money, securities or any other assets from a client, unless:
          1. the client is a financial institution whose business includes lending money to the public and the borrowing is in the normal course of the institution’s business, or
          2. the client is a Related Person as defined by the Income Tax Act (Canada) and the transaction is addressed in accordance with the Dealer Member’s policies and procedures, 
          3. and
          4. in the case of Associate Portfolio Managers, Portfolio Managers, Investment Representatives and Registered Representatives, the arrangement set out in paragraph 3115(2)(iii)(a)(II) is disclosed to and approved in writing by the Dealer Member, prior to the transaction. 
      4. Lending to clients
        1. Lending money, or providing a guarantee in relation to a loan of money, securities or any other assets to a client, unless:
          1. the client is a Related Person as defined by the Income Tax Act (Canada) and the transaction complies with the Dealer Member’s policies and procedures, and
          2. in the case of Associate Portfolio Managers, Portfolio Managers, Investment Representatives and Registered Representatives, the arrangement set out in paragraph 3115(2)(iv)(a)(I) is disclosed to and approved in writing by the Dealer Member, prior to the transaction.
      5. Control or authority
        1. Acting as a Power of Attorney, trustee, executor, or otherwise having full or partial control or authority over the financial affairs of a client, unless:
          1. the client is a Related Person as defined by the Income Tax Act (Canada) and the existence of such control is addressed in accordance with the Dealer Member’s policies and procedures, and
          2. in the case of Associate Portfolio Managers, Portfolio Managers, Investment Representatives and Registered Representatives, the arrangement in paragraph 3115(2)(v)(a)(I) is disclosed to and approved in writing by the Dealer Member, prior to entering into the arrangement.
        2. In the case of discretionary accounts and managed accounts, paragraph 3115(2)(v)(a)(I) does not apply to the extent that the control or authority is solely exercised consistent with the terms of the discretionary account agreement or the managed account agreement, and with IIROC requirements for such accounts.

    There is no history log for this rule.

    There is no history log for this rule.