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  • Inducements

    • BC-2.10.14

      Investment firm licensees must have systems and controls, policies and procedures to ensure that neither they, nor any of their employees, offer, give, solicit or accept any inducement which is likely to conflict significantly with any duty that they owe to their clients.

    • BC-2.10.15

      Investment firm licensees may only accept goods and services under a soft dollar agreement if:

      (a) The goods and services do not constitute an inducement;
      (b) The goods and services are reasonably expected to assist in the provision of regulated investment activities to the investment firm licensee's clients;
      (c) The agreement is a written agreement for the supply of goods or services described in Rule BC-2.10.14, and these goods and services do not take the form of, or include, cash or any other direct financial benefit; and
      (d) The investment firm licensee makes adequate disclosures regarding the use of soft dollar agreements.
      Amended: January 2007

    • BC-2.10.16

      For the purpose of Sub-Paragraph BC-2.10.15(d), Paragraph BC-2.12.12 sets out the minimum disclosure requirements.

      Amended: January 2007

    • BC-2.10.17

      A soft dollar agreement is an agreement in any form under which an investment firm licensee receives goods or services in return for investment business put through or in the way of another person.

    • BC-2.10.18

      Before an investment firm licensee enters into a transaction for a client, either directly or indirectly, with or through the agency of another person, under a soft dollar agreement which the investment firm licensee has, or knows that another member of its group has, with that other person, it must disclose to its client:

      (a) The existence of the soft dollar agreement; and
      (b) The investment firm licensee's or its group's policy relating to soft dollar agreements.
      Amended: January 2007

    • BC-2.10.19

      If an investment firm licensee has a soft dollar agreement under which the investment firm licensee deals for a client, the investment firm licensee must provide that client with information as set out in Paragraph BC-2.12.12.