7103. Policies and procedures

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    1. A Dealer Member’s policies and procedures must specifically address trading and conduct in the debt securities market to provide reasonable assurance of compliance with securities laws and IIROC requirements.

    2. A Dealer Member’s policies and procedures must specifically address the following items for the debt securities markets:

      1. restrictions of, and controls over, trading in non‑client accounts,

      2. a prohibition on the use of inside information,

      3. a prohibition of front‑running,

      4. standards for fair allocation of new issues among clients, 

      5. standards for prompt and accurate disclosure to clients and counterparties if any conflict of interest arises, and

      6. for retail client accounts:

        1. written policies or guidelines issued to its Registered Representatives on the Dealer Member’s mark‑ups, mark‑downs and commissions on debt securities sold to clients or purchased from clients, and

        2. reasonable monitoring procedures to detect mark‑ups, mark‑downs or commissions that exceed the maximums specified by the Dealer Member, and to ensure any deviation is justified.

    3. An Executive responsible for the appropriate business group of the Dealer Member must approve the policies, procedures and internal controls referred to in section 7103.

    4. A Dealer Member must regularly review its policies and procedures to ensure they are appropriate for the size, nature, and complexity of the Dealer Member’s business.

    There is no history log for this rule.

    There is no history log for this rule.