Membership is open to Canadian entities that are registered to carry on business as dealers or advisors in any province or jurisdiction in Canada.

An IIROC Dealer Member must be an entity that is formed under Canadian federal, provincial or territorial law. A firm outside Canada would need to create a Canadian entity that would apply for IIROC membership. The Canadian applicant would have to satisfy all requirements for membership.

No, although owners of 10% or more of the voting, participating or equity shares of an IIROC Dealer Member or its parent holding company must also be approved by IIROC.

All applicable documents and a deposit of $10,000 should be submitted to Membership Coordinator & GCO Specialist to begin the membership process.

Dealer Members of IIROC pay a one-time Entrance Fee of $25,000 ($10,000 of this is a non-refundable deposit required at the time the application is made), a one-time contribution to IIROC's Restricted Fund and ongoing Annual Fees based on the Dealer Member's capital and revenues. The Restricted Fund is a fund administered by IIROC under IIROC's recognition orders and to which all Members are required to make a one-time contribution. Fines and settlements collected by IIROC are also contributed to the Restricted Fund.

All applications for membership in IIROC undergo an extensive review with respect to financial & operations compliance, business conduct compliance, trading conduct compliance and registration requirements. Applicants will not be admitted to membership until these requirements have been met. Generally, applications take a minimum of six months.

There are no classes of Dealer Membership in IIROC. All Dealer Members are required to meet and maintain the same requirements. Applicants can, however, enter into a contractual arrangement whereby another Dealer Member of IIROC will provide back office, settlement and clearing services. This arrangement is known as an Introducing/Carrying Broker Agreement and certain membership requirements, such as minimum capital and insurance, are dependent on the type of arrangements Dealer Members establish.

It is not possible to transfer your registration. A separate application to IIROC, satisfying all requirements, must be made.

The only insurance necessary for membership is the Financial Institution Bond and Mail Insurance. The Financial Institution Bond is obtained from an insurance carrier. Its purpose is to protect the member from losses related to business activities. All Dealer Members are required to carry this insurance coverage.

A separate membership requirement that is sometimes confused with insurance relates to the Canadian Investor Protection Fund. The Canadian Investor Protection Fund is a fund supported by Dealer Members. Its purpose is to protect clients of Dealer Members against losses resulting from the

insolvency of a member. A company automatically becomes a participant in the Canadian Investor Protection Fund on admission to membership in IIROC and is assessed on a quarterly basis for contributions to the Fund.

The IIROC Rules, specifically Rules 2206 and 2215, address the approval or notification requirements when an IIROC Member or its parent holding company, directly or indirectly, acquires/creates another entity for the purpose of transacting securities-related business, or otherwise, in certain instances, District Council approval is required.