3217. Leverage risk disclosure statement

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    1. When opening a new account for a retail client, prior to making an initial recommendation to a retail client to purchase securities using borrowed money, or when first becoming aware of a retail client’s intention to purchase securities using borrowed money, a Dealer Member must:
      1. provide each retail client with a copy of the leverage risk disclosure statement, and
      2. obtain the retail client’s positive acknowledgement that they are in receipt of the disclosure statement referred to in clause 3217(1)(i). 
    2. A Dealer Member is not required to comply with subsection 3217(1) where it has provided the retail client with a leverage risk disclosure statement in accordance with subsection 3217(1) within the last six months.
    3. A leverage risk disclosure statement must be in substantially the following words:
      1. “Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.”

    There is no history log for this rule.

    There is no history log for this rule.