3809. Report on client positions held outside of the Dealer Member

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    1. A Dealer Member must send a quarterly report on outside holdings (report to be called “Report on client positions held outside of the Dealer Member”) to each retail client who, at the end of the quarter holds outside of the Dealer Member’s control, either in book-based client name or physical client name, one or more positions:

      1. in securities issued by a scholarship plan, a mutual fund or an investment fund that is a labour sponsored investment fund corporation, or labour sponsored venture capital corporation, under applicable laws and the Dealer Member is the dealer of record for the client on the records of the issuer of the security or the records of the issuer’s investment fund manager, and 

      2. in any other security on which the Dealer Member receives continuing compensation payments related to the client’s ownership of the security from the issuer of the security, the investment fund manager of the issuer or any other party.

    2. The report must include all of the following information about the client’s outside holdings at the end of the period for which the report is made:

      1. the name and quantity of each security position,

      2. for each security position:

        1. where the market value is determinable:

          1. the market value,

          2. the total market value, and

          3. if applicable, the notification required pursuant to clause (ii) of the definition of market value in subsection 3802(1), and

        2. where the market value is not determinable, the notification required pursuant to clause (iii) of the definition of market value in subsection 3802(1), 

      3. for each security position:

        1. where the cost is determinable, either the cost or the total cost, and

        2. where the cost is not determinable, the notification required pursuant to clause (iii) of the definition of cost in subsection 3802(1),

      4. a notation setting out the definitions of the calculation methodologies used to calculate the individual position cost information included in the statement, provided that where the individual position cost information included in the statement is calculated using:

        1. the book cost calculation methodology, the language set out in the definition of book cost in subsection 3802(1) or language that is substantially similar must be used as the notation, and

        2. the original cost calculation methodology, the language set out in the definition of original cost in subsection 3802(1) or language that is substantially similar must be used as the notation, 

      5. the total market value of all security positions, 

      6. the total cost of all security positions, and

      7. the name of the party that holds or controls each security position and a description of the way it is held.

    3. In the case of clients with any outside holdings which might be subject to a deferred sales charge if they are sold, the report must include a notation identifying each security position that might be subject to a deferred sales charge.

    4. The report must indicate:

      1. that the client’s outside holdings are not covered by the Canadian Investor Protection Fund, and

      2. whether the securities are covered under any other investor protection fund approved or recognized by a Canadian securities regulatory authority and, if they are, the name of the fund.

    There is no history log for this rule.

    There is no history log for this rule.