3811. Fee/​charge report

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    1. A Dealer Member must send a fee/charge report to each retail client who, at the end of the 12-month period covered by the report or a shorter period in the case of the first report delivered after a client has opened an account, has:

      1. an account, or

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

      3. and

      4. paid a fee, charge or other payment, including payments referred to in clauses 3811(2)(viii) and 3811(2)(ix), either directly or indirectly, to the Dealer Member or any of its registered individuals during the period covered by the report.
    2. The annual fee/charge 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. a discussion of the operating charges which might be applicable to the client’s account,

      2. the total amount of each type of operating charge related to the client’s account paid by the client during the period covered by the report, 

      3. the aggregate total amount of all operating charges related to the client’s account paid by the client during the period covered by the report,

      4. the total amount of each type of transaction charge related to the purchase or sale of securities paid by the client during the period covered by the report,

      5. the aggregate total amount of all transaction charges related to the client’s account paid by the client during the period covered by the report,

      6. the aggregate total amount of all charges reported under clauses 3811(2)(iii) and 3811(2)(v),

      7. if the Dealer Member purchased or sold debt securities for the client during the period of the report, either of the following:

        1. the total amount of any mark-ups, mark-downs, commissions or other fees or charges the Dealer Member applied on the purchases or sales of debt securities,

        2. the total amount of any commissions charged to the client by the Dealer Member on the purchases or sales of debt securities and, if the Dealer Member applied mark-ups, mark-downs or other fees or charges other than commissions on the purchases or sales of debt securities, the following notification or a notification that is substantially similar:

          1. “For debt securities purchased or sold for you during the period covered by this report, dealer firm remuneration was added to the price you paid (in the case of a purchase) or deducted from the price your received (in the case of a sale).  This amount was in addition to any commissions you were charged.”,

      8. the total amount of each type of payment, other than trailing commissions, that is made to the Dealer Member or any of its registered individuals by a securities issuer or another registrant in relation to registerable services provided to the client during the period covered by the report, accompanied by an explanation of each type of payment, and

      9. if the Dealer Member received trailing commissions related to securities owned by the client during the period covered by the report, the following notification or a notification that is substantially similar:

        1. “We received $[amount] in trailing commissions in respect of securities you owned during the period covered by this report.

        2. Investment funds pay investment fund managers a fee for managing their funds.  The managers pay us ongoing trailing commissions for the services and advice we provide you.  The amount of the trailing commission depends on the sales charge option you chose when you purchased the fund.  You are not directly charged the trailing commission or the management fee.  But, these fees affect you because they reduce the amount of the fund’s return to you.  Information about management fees and other charges to your investment funds is included in the prospectus or fund facts document for each fund.”

    3. For the purposes of this section 3811, 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.

    4. For the purposes of this section 3811, the information in respect of outside holdings 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.

    5. Subsections 3811(3) and 3811(4) 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 outside holdings of a client required to be reported under section 3809 provided:

      1. the client has consented in writing to receiving a consolidated report, and

      2. the report that is sent specifies the accounts and securities for which the consolidated information is being provided.

    6. All annual fee/charge reports that are sent to a client, whether prepared for an individual account or prepared on a consolidated account basis pursuant to subsection 3811(5), 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 performance reports that are sent to the same client.

    There is no history log for this rule.

    There is no history log for this rule.