IIROC Bare Trustee Agreement List: What You Need to Know
As a participant in the Canadian securities industry, it’s important to be aware of IIROC’s rules and regulations. One key aspect of IIROC’s oversight is its bare trustee agreement list.
But what is a bare trustee agreement, and why is it important?
In simple terms, a bare trustee agreement is a legal document that outlines the relationship between a trustee (the “bare trustee”) and the beneficial owner of assets held in trust. The trustee holds legal title to the assets, but has no right to use or dispose of them without the direction of the beneficial owner.
So why does IIROC maintain a list of bare trustee agreements?
The answer lies in IIROC’s role as a self-regulatory organization (SRO) for Canada’s securities industry. IIROC’s mandate is to protect investors and ensure fair and efficient markets. One way it does this is by setting standards for how securities firms and individuals conduct business.
One of these standards is the requirement for firms to maintain accurate records of their clients’ assets. This includes knowing where the assets are held and who has legal ownership of them. When a client’s assets are held in trust, IIROC expects the trustee to be identified and documented in the firm’s records.
The bare trustee agreement list is a tool that IIROC uses to verify that securities firms are complying with this requirement. By maintaining a list of approved bare trustees, IIROC can ensure that firms are not holding assets in unregistered or unauthorized accounts.
So what does this mean for you as a participant in the securities industry?
If you are a dealer or adviser, you need to be aware of the requirements for maintaining accurate records of client assets. If your firm holds assets in trust for clients, you need to ensure that your firm’s records accurately reflect the legal ownership of those assets.
One way to do this is by using a bare trustee agreement from IIROC’s approved list. By doing so, you can be confident that your firm is in compliance with IIROC’s requirements and that your clients’ assets are held securely.
In summary, the IIROC bare trustee agreement list is an important tool for ensuring that securities firms are complying with standards for maintaining accurate records of client assets. By using an approved bare trustee agreement, firms can demonstrate their compliance with these standards and provide assurance to investors that their assets are held securely.