3404. Exemptions from and exceptions to suitability requirements

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    1. A Dealer Member that has received approval from IIROC to offer order execution only account services to clients is not required to comply with sections 3402 or 3403, provided that the Dealer Member:

      1. complies with all IIROC requirements applicable to offering order execution only accounts services, and

      2. provides no recommendations to purchase, sell, hold or exchange any security, including any class of security or the security of a class of issuer.

    2. A Dealer Member has no suitability obligation and is not required to make a suitability determination when it executes a trade on the instructions of:

      1. another Dealer Member, a regulated entity, an exempt market dealer, a portfolio manager, a bank, a trust company or an insurance company, or

      2. an institutional client that:

        1. is also a “permitted client”, as defined in National Instrument 31-103,

        2. is not a client described in clause 3404(2)(i), and

        3. has waived, in writing, the protections offered to them under subsections 3403(1) and 3403(2).

    3. A Dealer Member has no suitability obligation and is not required to make a suitability determination when accepting or transmitting orders for a client who has been provided with direct electronic access within the meaning of National Instrument 23-103,  if the Dealer Member:  

      1. determines that the direct electronic access service offering is suitable for the client, 

      2. does not provide recommendations to any retail clients who have been provided with direct electronic access, and

      3. complies with the Universal Market Integrity Rule requirements applicable to the direct electronic access service offering and the requirements of NI 23-103.

    3405.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.