IIROC Issues Guidance on Exemption Applications

April 19, 2018

The Investment Industry Regulatory Organization of Canada (IIROC) recently issued a notice setting out how a member (Dealer Member) may make an application for an exemption from the IIROC Dealer Member rules, other than proficiency requirements.

Content of Application

IIROC has not prescribed a particular form for an exemption application, however noted that the following should be included:

  • the name of the applicant and category of IIROC membership;
  • the applicable Dealer Member rule or rules;
  • the relevant facts;
  • the details of any pre-application discussions with IIROC;
  • the reasons for the application;
  • rationale supporting the application (including any policy arguments and previous IIROC decisions); and
  • any supporting documentation.

If seeking confidentiality, a Dealer Member may provide rationale for the application to be kept confidential, which is at the discretion of IIROC.

Review and Decision Making Process

The Dealer Member will be notified when the review process has started and contacted for any further information requests. Once a decision has been made, the Dealer Member will be advised and, subject to confidentiality, any exemptions that are novel or are thought to potentially benefit other Dealer Members will be made public and published in one of the following formats:

  • full disclosure;
  • redacted (with confidential information removed);
  • no-names (Dealer Member’s name removed);
  • summary (with or without the Dealer Member’s name); or
  • as part of the annual exemption summary notice (for example, see IIROC Notice 17-0056).

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