5821. Requirements for account guarantees by shareholders, Registered Representatives or employees

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    1. Section 5820 notwithstanding, a Dealer Member may only permit clients who are shareholders, Registered Representatives or employees of the Dealer Member to guarantee the accounts of another client:

      1. if:

        1. IIROC expressly approves the guarantee arrangement in writing,

        2. the guarantee agreement can only be cancelled with IIROC’s written approval,

        3. the guarantor is not permitted to transfer cash, securities or any other property from the accounts of the guarantor without written approval from IIROC,

        4. the provisions of Schedule 4 of Form 1 continue to apply to the guaranteed client accounts regardless of the guarantee. Specifically, if the account has been restricted and subsequently fully margined, the Dealer Member will not conduct any trading in the account without IIROC approving the release of the guarantee,

      2. or

      3. if, in the case of a shareholder guarantee:

        1. there is public ownership of the Dealer Member or holding company securities held by the shareholder,

        2. the shareholder is not an employee, Registered Representative or Executive of the Dealer Member, and

        3. the shareholder does not hold a significant equity interest (defined in clause 2102(1))of the Dealer Member or its holding company.

    There is no history log for this rule.

    There is no history log for this rule.