3810. Performance report

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    1. A Dealer Member must send an annual performance report to each retail client who, at the end of the 12-month period covered by the report has:

      1. an account with:

        1. a debit or credit balance, or

        2. one or more security positions (including securities held in safekeeping or in segregation), or

      2. holds one or more outside holdings for which quarterly reporting pursuant to section 3809 is required,

      3. and

      4. there is at least one security in the account or at least one outside holding for which quarterly reporting pursuant to section 3809 is required, for which a market value can be determined pursuant to either clause (i) or clause (ii) of the definition of market value in subsection 3802(1),

      5. and

      6. the client’s account was opened at least 12 months ago.  
    2. The annual performance report must include all of the following combined information about the client’s account and outside holdings at the end of the period for which the report is made: 
      1. the total combined market value of all cash and security positions:
        1. as at July 15, 2015 or, where the account was opened prior to July 15, 2015 and the information is available, as at the account opening date,
        2. as at the beginning date of the 12-month period covered by the report, and
        3. as at the end date of the report,
      2. the total combined market value of all deposits and transfers in of cash and security positions:
        1. in the period from July 15, 2015 or, where the account was opened prior to July 15, 2015 and the information is available, the period from the account opening date, to the end date of the report, and
        2. in the 12-month period covered by the report, 
      3. the total combined market value of all withdrawals and transfers out of cash and security positions:
        1. In the period from July 15, 2015 or, where the account was opened prior to July 15, 2015 and the information is available, the period from the account opening date to the end date of the report, and
        2. In the 12-month period covered by the report,
      4. the total combined change in market value of all cash and security positions:
        1. for the period from July 15, 2015 or, where the account was opened prior to July 15, 2015 and the information is available, the period from the account opening date to the end date of the report, determined using the following formula
        2. Total market value change from account opening
        3. =    Closing market value
                [Sub-clause 3810(2)(i)(c)]
        4. -    Account opening market value
                [Sub-clause 3810(2)(i)(a)]
        5. -    Deposits and transfers in 
              ​​​​​​​  [Sub-clause 3810(2)(ii)(a)]
        6. +    Withdrawals and transfers out
            ​​​​​​​  ​​​​​​​  [Sub-clause 3810(2)(iii)(a)], and
        7. for the 12-month period covered by the report, determined using the following formula:

          Total 12-month market value change
        8. =    Closing market value
            ​​​​​​​  ​​​​​​​  ​​​​​​​[Sub-clause 3810(2)(i)(c)]
        9. -    Account opening market value
            ​​​​​​​  ​​​​​​​  ​​​​​​​[Sub-clause 3810(2)(i)(b)]
        10. -    Deposits and transfers in
            ​​​​​​​  ​​​​​​​  [Sub-clause 3810(2)(ii)(b)]
        11. +    Withdrawals and transfers out
            ​​​​​​​  ​​​​​​​  [Sub-clause 3810(2)(iii)(b)],
      5. the amount of the annualized total percentage return calculated net of charges using a money weighted rate of return calculation methodology generally accepted in the securities industry for the following periods:
        1. the 12-month period covered by the report,
        2. the three-year period preceding the end date of the report,
        3. the five year period preceding the end date of the report,
        4. the 10 year period preceding the end date of the report, and
        5. the period from July 15, 2015 or, where the account was opened prior to July 15, 2015 and the information is available, the period from the account opening date to the end date of the report,
      6. provided that if any portion of a period referred to in sub-clauses 3810(2)(v)(b), 3810(2)(v)(c) and 3810(2)(v)(d) is before July 15, 2015, the Dealer Member is not required to report the annualized total percentage return for that period, and
      7. the definition of total percentage return as set out in subsection 3802(1) and a notification indicating the following:
        1. the total percentage return presented in the performance report was calculated net of fees / charges,
        2. the calculation method used, and
        3. a general explanation in plain language of what the calculation method takes into account. 
    3. The combined information required to be provided under subsection 3810(2) must be presented using text, tables and charts, and must be accompanied by notes in the performance report explaining:
      1. the content of the report and how a client can use the information to assess the performance of the client’s investments, and
      2. the changing value of the client’s investments as reflected in the information in the report.
    4. The Dealer Member must send a performance report containing the combined information required to be provided under subsection 3810(2) to a client every 12 months, except that:
      1. the first performance report sent after a Dealer Member opens an account for a client may be sent within 24 months, and
      2. any performance report sent to a client that covers the 12-month period ending on December 31, 2016 is not required to include in the report the information set out in:
        1. sub-clauses 3810(2)(i)(a), 3810(2)(ii)(a), 3810(2)(iii)(a) and 3810(2)(iv)(a) [Prior period comparative account activity information], and
        2. sub-clauses 3810(2)(v)(b) through 3810(2)(v)(e) [Prior period comparative percentage return information], and
      3. where a performance report that covers the 12-month period ending on December 31, 2016 is sent to the client pursuant to clause 3810(4)(ii), all subsequent performance reports for the 12-month periods ending on December 31, 2017 and each calendar year thereafter may include:
        1. the information required by sub-clauses 3810(2)(i)(a), 3810(2)(ii)(a), 3810(2)(iii)(a) and 3810(2)(iv)(a) [Prior period comparative account activity information] as at or for the period commencing January 1, 2016, as applicable, and
        2. the information required by sub-clauses 3810(2)(v)(b) through 3810(2)(v)(e) [Prior period comparative percentage return information] provided that if any portion of a period referred to in sub-clauses 3810(2)(v)(b), 3810(2)(v)(c), and 3810(2)(v)(d), is before January 1, 2016, the Dealer Member is not required to report the annualized total percentage return for that period.
    5. For the purposes of this section 3810, the information in respect of securities of a client required to be reported under section 3808 must be provided in a separate report for each of the client’s accounts.
    6. For the purposes of this section 3810, the information in respect of securities of a client required to be reported under section 3809 must be included in the report for each of the client’s accounts through which the securities were transacted.
    7. Subsections 3810(5) and 3810(6) do not apply if the Dealer Member sends a single report to the client that consolidates the required information for more than one of a client’s accounts and any securities of a client required to be reported under section 3809 provided:
      1. the client has consented in writing to receiving a consolidated report,
      2. and
      3. the report that is sent specifies the accounts and securities for which the consolidated information is being provided.
    8. All annual performance reports that are sent to a client, whether prepared for an individual account or prepared on a consolidated account basis pursuant to subsection 3810(7), must:
      1. be prepared for the same 12-month period, and
      2. include aggregated information for the same accounts and securities,
      3. as the annual fee/charge reports that are sent to the same client.

    There is no history log for this rule.

    There is no history log for this rule.