The applicable securities regulatory authorities recently approved amendments to the Investment Industry Regulatory Organization of Canada (IIROC) Dealer Member Rule 8.7 Dealer Member Resignations, Amalgamations, Etc. The amendments will require a resigning, suspended, terminated or surrendering Dealer Member to make full payment of its annual fees for the entire fiscal year in which its resignation, suspension, termination or surrender becomes effective, subject to a reduction in the fee payable in certain circumstances.
The reduction would permit a resigning, suspended or terminated Dealer Member to pay membership fees only until the end of the fiscal quarter in which all of the following conditions have been met: (i) the Dealer Member has transferred all customer accounts to another Dealer Member; (ii) the Dealer Member has no remaining approved persons other than shareholders, the Ultimate Designated Person, the Chief Compliance Officer and the Chief Financial Officer; and (iii) in the case of a resigning Dealer Member, the Dealer Member has provided written notice of its resignation to IIROC.
This reduction is not available to a Dealer Member that surrenders its membership, requiring such a member to make full payment of its annual fees for the entire fiscal year in which its surrender becomes effective.
The amendments are effective immediately. For further information, please consult IIROC Notice 15-0196 published on September 3, 2015.
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