3962. Supervision of retail options accounts

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    1. The designated Supervisor is responsible for ensuring that all recommendations made for an account are and continue to be suitable for the client. 

    2. The Dealer Member must ensure that only Registered Representatives, Investment Representatives, Portfolio Managers and Associate Portfolio Managers that are also options qualified trade in or advise on options.

    3. On a daily and monthly basis, the designated Supervisor must review all options accounts that are designated as discretionary accounts and managed accounts

    4. The Dealer Member must have policies and procedures that specifically address notifying clients of:

      1. approaching expiry dates, 

      2. significant changes in options resulting from changes in the underlying interest,

      3. any changes in the Dealer Member’s business policy, and

      4. any new developments in the trading or regulation of options that may impact clients.

    5. The Dealer Member must have policies and procedures that specifically require the designated Supervisor to approve the solicitation of clients to use options programs, as well as clients’ actual use of options.

    There is no history log for this rule.

    There is no history log for this rule.