3971. Supervision of managed accounts

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    1. A Dealer Member that has managed accounts must: 

      1. designate a Supervisor to be responsible for the supervision of managed accounts, and

      2. have policies and procedures that specifically address the supervision of individuals responsible for handling managed accounts  to provide reasonable assurance of compliance with IIROC requirements.  

    2. In addition to meeting 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, the Dealer Member’s policies and procedures dealing with the supervision of managed accounts must specifically address:

      1. identifying when a Portfolio Manager or sub-advisor, as described in section 3279, has contravened managed account conflict of interest related requirements set out in section 3280, and

      2. ensuring fairness in the allocation of investment opportunities among its managed accounts.

    3. The Dealer Member’s policies and procedures dealing with the supervision of managed accounts must specifically address the direct supervision of any Associate Portfolio Manager that provides discretionary management to managed accounts, including a prohibition on the Associate Portfolio Manager providing advice unless the advice has been approved by a Portfolio Manager at the Dealer Member prior to the Associate Portfolio Manager providing the advice.

    4. Supervision of the Associate Portfolio Manager must be conducted by: 

      1. a Portfolio Manager at the Dealer Member or another Dealer Member who is authorized to provide discretionary management to managed accounts and who is not in the period of close supervision, or

      2. a person registered as an advisor under securities laws who has entered into a contract with the Dealer Member to provide the supervision.

    There is no history log for this rule.

    There is no history log for this rule.