OrionConsulting.services
Toronto, Canada
Securities Compliance Consulting
IIROC-REGULATED INVESTMENT DEALER
Path to success
IIROC membership is mandatory for investment dealers. A dealer firm registered as investment dealer with the provincial securities commission must become a member of the Investment Industry Regulatory Organization of Canada in order to carry on business as an IIROC-regulated Dealer Member firm.
The road to registration as “investment dealer” and approval as “IIROC-regulated Dealer Member” is time-consuming and labor-intensive, requiring the input of experienced professionals in law, accounting, finance, compliance, information technology and data security.
The actual time and cost of a successful membership application depends on, among other things, the complexity of the applicant’s ownership structure, its corporate governance, its executives who can meet the fitness for registration and conditions of approval, and the types of its business activities.
An applicant seeking IIROC membership approval will undergo an extensive review by IIROC’s financial and operations compliance, business conduct compliance and registration staff. This includes a review and analysis of the information and documents submitted, discussions with the applicant’s management and technical personnel and an on-site visit to examine premises and systems.
After providing the required documentation and meeting membership requirements, the application goes to District Council, where a favorable recommendation will be followed with its submission to the Board of Directors for approval.
MEMBERSHIP APPLICATION CHECKLIST
Summary of requirements
Our New Dealer Services can assist you, the dealer applicant, at every stage of the membership application process.
As your consultant, we can bring our expertise and experience to bear on the preparation of documentation required in your membership application review:
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5 year business plan;
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Financial forecast including profit/loss and capital projections;
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Corporate governance document and corporate organization chart;
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System of supervision of business conduct and approved persons;
- Registration and approval of individuals who conduct registrable activities;
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System of books and records;
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Compliance governance and oversight of supervisory procedures;
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Internal control policy statements;
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Compliance manual including any additional procedures specific to the business model;
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Relationship disclosure, conflict of interest disclosure, risk disclosures, etc;
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Cybersecurity risk management and cyber incident management plan;
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Business continuity plan; and
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Other supporting documents.
CFO SERVICES
Monthly Financial Report and Form 1 filings
We can provide part-time CFO services to assist with your preparation of the firm's financial statements, and IIROC Form 1 statements and schedules for the opening balance audit and subsequent reporting requirements.
We can help you engage an IIROC-approved panel auditor for the audit of your books and records and financial statements.
Leading up and subsequent to membership approval on an ongoing basis, your part-time CFO will be responsible for compliance with IIROC’s financial and operational rules by supervising your accounting and regulatory financial reporting, including:
• monitoring capital adequacy and early warning tests, free credit limits, insurance requirements and aging of unsegregated customer fully paid and excess margin security positions;
• supervision of individuals who assist in preparing your financial reports and maintaining your books and records from which the reports are derived;
• supervision of outsourced functions relating to the CFO’s responsibilities; and
• final preparation, approval and responsibility for the accuracy of your financial reports submitted to IIROC.
ADDITIONAL SERVICES
Registration and approval
Your firm must be registered or licensed with the principal regulator of the jurisdiction in Canada in which your head office is located.
Your employees conducting regulated activities must also be registered and approved by securities authorities in jurisdictions where the Dealer firm's business is carried out.
We can:
• guide you through the registration process, including regulatory filings on the National Registration Database (NRD);
• vet your employees’ personal, professional and financial background for the necessary experience, qualifications and licensing proficiencies in their individual approval categories;
• prepare you for your meeting with IIROC staff to review your business model; and
• provide a comprehensive review of your application prior to submission to ensure the completeness of the information required.
OTHER SERVICES
We can also help you engage:
• legal counsel for the preparation and review of your legal documents such as client account agreements, service agreements, outsourcing agreements and vendor agreements, etc; and
• HR professionals and/or employment lawyers for the preparation of employment contracts for senior executives.