Alert:
A nationwide postal strike or lockout may occur as early as November 3, 2004. Dealer Members must take steps to ensure that document delivery requirements prescribed under CIRO Rules continue to be met.
Fee Models
Interim Fee Models
CIRO is a cost-recovery, not-for-profit organization that recovers its operating costs primarily through its Fee Models. CIRO is maintaining and administering the existing fee structures and models of the legacy self-regulatory organizations on an interim basis (the “Interim Fee Models”).
These Interim Fee Models included reductions in annual minimum fees for a minimum of two years or until an integrated Fee Model was approved. They also included other necessary modifications to align administration of fees.
The Interim Fee Model Guidelines applicable to Investment Dealers and Marketplace Members were published in IIROC Notice 22-0181 and provide comprehensive information on fees collected under the four relevant fee models.
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.
Members who are dually registered as both an Investment Dealer Member and a Mutual Fund Dealer Member pay fees under both Interim Fee Models until such time as an integrated Fee Model is approved.
The proposed integrated Fee Model was published for comment on April 25, 2024 in Bulletin 24-0154 with a target implementation date of April 1, 2025. Responses and status can be found under Consultations.
Integration Cost Recovery
The Integration Cost Recovery Fee Model Guideline addresses the model for cost recovery of the expenses incurred until March 31, 2024 relating to the amalgamation and start-up of CIRO. This is applicable to affiliated Investment Dealer Members and Mutual Fund Dealer Members and those dually registered as both an Investment Dealer and Mutual Fund Dealer Member.
CIPF Assessments
The Canadian Investor Protection Fund (CIPF) provides limited protection for property held by a CIPF Member on behalf of eligible clients if the Member becomes insolvent. All CIRO-regulated Dealer Members are Members of CIPF.
The CIPF Board of Directors sets the size and composition of the funds to be maintained for the client assets it protects, and the basis and rate of assessments for Members.
Under terms of agreement between CIRO and CIPF, CIPF is authorized to assess Members in order to provide resources for the funds that CIPF maintains to pay losses to eligible clients of insolvent Members, to repay any of its obligations under its credit facilities, and to pay operational expenses. Assessments are collected by CIRO and remitted to CIPF.
For more information on CIPF assessments, refer to the CIPF Assessment Policy, or contact CIPF directly at 416-866-8366, toll-free at 1-866-243-6981, or by email at [email protected].
To learn more about CIPF, visit CIPF’s website.