IIROC Fee Model Guidelines – Update November 2022

IIROC has updated the fee model guidelines (Guidance) to reflect implementation of the Interim Fee Model as part of the Amalgamation with the Mutual Fund Dealers Association of Canada (MFDA) to form the New Self-Regulatory Organization of Canada (New SRO).

This Interim Fee Model is applicable to Investment Dealer Members and Marketplace Members of the Corporation. The Corporation is the corporation continuing from the amalgamation effective January 1, 2023 of IIROC and the MFDA.

This update will be effective as of January 1, 2023 and include the key updates below:

1. Reduction of the Dealer Member annual minimum fee from $22,500 to $16,000 as part of the rebalancing of the Interim Fee Model. Small dealers are expected to represent a smaller portion of Member activities over the transition period for New SRO. This aligns with requirements that fees imposed must be equitably allocated and be proportionate to Members’ activities, and is in keeping with the public interest principles to facilitate access to advice and products for investors of different demographics, where underserved communities are largely supported by a robust small dealer community. (Section 6)
2. Necessary administrative modifications to align the timing and communication of fee setting along with related billing, payments, and effect of non-payment terms. (Sections 8, 15, 26)
3. Removal of reference to IIROC and updated to reference the Corporation.
4. Removal of reference to District Council approvals. (Section 9, Appendix B By-law 3.5(1))
5. Additional terms added and meanings updated in the Interpretation section for alignment to Recognition Orders, interim rules, and clarity in application to Members that are registered as both an investment dealer and a mutual fund dealer.
6. An administrative update not related to the Amalgamation to add continuing accreditation revenue as part of the calculation of net annual costs to be recovered through Annual Fees.

This Notice replaces the IIROC Fee Model Guidelines, Notice 21-0238 published on December 15, 2021.

Appendix C shows the changes made to the Fee Model Guidelines published in December 2021.

The Interim Fee Model applicable to Mutual Fund Dealer Members is included in Rule 8 Membership Matters of the Mutual Fund Dealer Interim Rules and summarized in MFDA Bulletin #0920-M published on November 24, 2022.

For more information on the fee models, please contact:

Laura McNeil
Chief Financial Officer
121 King Street West, Suite 2000
Toronto, ON M5H 3T9
[email protected]