3955. Supervision of order execution only accounts

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    1. A Dealer Member that is approved by IIROC to provide order execution only accounts within a separate legal entity or within a separate business unit must have policies and procedures in place to:

      1. meet the Dealer Member’s general supervisory obligations and any relevant obligations relating to trading in securities, debt securities, options, futures contracts and futures contract options, 

      2. ensure that clients are not provided with recommendations as a result of the client having an account with: 

        1. a separate legal entity of the Dealer Member,

        2. a separate business unit of the Dealer Member, or 

        3. the Dealer Member itself, and

      3. to review customer trading and accounts for those concerns listed in Rule 3900, other than those relating to the suitability requirements.

    2. The Dealer Member, or separate business unit of the Dealer Member, policies and proceduresrelating to review of client trading  must specifically address the risks associated with the method of order entry and the absence of intermediation by employees of the Dealer Member.

    3. The Dealer Member or separate business unit of the Dealer Member must maintain an audit trail of all supervisory reviews as required in Rule 3900.

    4. The Dealer Member or separate business unit of the Dealer Member must have sufficient supervisory resources allocated at head office and branch levels to effectively implement the supervisory procedures required under section 3955.

    3956. – 3959.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.