What does IIROC Rule 200 state regarding statement obligations?

What does IIROC Rule 200 state regarding statement obligations?

• A. The dealer is obligated to issue statements for all transactions.
• B. The dealer is not obliged to issue statements for immaterial entries.
• C. The dealer must send monthly statements to all clients.
• D. The dealer must provide statements upon client request only.

Answer: (B)

The accurate statement regarding IIROC Rule 200 is that the dealer is not obliged to issue statements for immaterial entries. This rule recognizes that not all transactions warrant detailed disclosure, particularly those that are minor or insignificant in the context of the client's overall financial dealings. By stipulating that only material transactions necessitate statements, the rule helps streamline communications and ensures that clients are provided with relevant information without being overwhelmed by unnecessary details.

The intention behind this guideline is to maintain effective communication between the dealer and the client while also reducing clutter in statement reporting. It's important for clients to receive clear and meaningful information that genuinely affects their financial position, rather than being inundated with every transaction that may have little impact. This focus on materiality underlines the principle of providing clients with useful and actionable insights into their accounts.

Choosing the other options would imply that statements are always required irrespective of their significance or that there are strict timing requirements, which is not aligned with the flexibility permitted by IIROC Rule 200.