4421. Safeguarding client and Dealer Member cash and securities

A Dealer Member must safeguard its clients’ and its own cash and securities:

1. to protect them against material loss, and

2. to detect and account for potential losses (for regulatory, financial and insurance purposes) on a timely basis.

A Dealer Member’s  policies and procedures must specifically address the minimum requirements for safeguarding cash and securities as described in sections 4422 through 4433.

IIROC recognizes that a Dealer Member with a small operation may be unable to comply with Rule 4400 requirements to segregate duties. If these minimum requirements are inappropriate because of a Dealer Member’s small size, it must implement alternative control procedures that IIROC approves.