3247. Margin account agreement

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    1. Prior to opening a margin account, a Dealer Member must:

      1. deliver a margin account agreement to the client, and  

      2. obtain a copy of the margin account agreement signed by the client.
    2. A Dealer Member’s margin account agreement must, at a minimum, contain a written description of the following rights and obligations:
      1. the client’s obligation to pay their indebtedness to the Dealer Member and to maintain adequate margin,
      2. the client’s obligation to pay interest on debit balances in their account,
      3. the Dealer Member’s right to raise money on and pledge assets held in the client’s account,
      4. the extent to which the Dealer Member has the right to use free credit balances in the client’s account for its own business or to cover debits in the same or other accounts,
      5. the Dealer Member’s right to sell assets in the client’s account and make purchases to cover short sales.  If the client requires prior notice, the Dealer Member must set out the nature of the notice and the client’s obligations to remedy any deficiency,
      6. the extent of the Dealer Member’s right, if any, to use a security in the client’s account for delivery against a short sale,
      7. the extent to which the Dealer Member has the right, if any, to use a security in the client’s account for delivery against a short sale in an account owned or controlled by the Dealer Member, a partner or Director,
      8. the extent of the Dealer Member’s right to use assets in the client’s account and to hold them as collateral for the client’s debt, and
      9. the Dealer Member’s obligation to carry out all transactions in accordance with IIROC requirements and, where applicable, the requirements of the marketplace on which the transaction has been executed.

    3248. – 3249.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.