4117. Consolidation of financial position with related companies

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    1. In calculating its risk adjusted capital, a Dealer Member may consolidate its financial position with the financial position of any of its related companies if:

      1. IIROC has provided the Dealer Member with prior written approval of the consolidation,

      2. the Dealer Member has guaranteed the obligations of the related company and the related company has guaranteed the obligations of the Dealer Member,

      3. the guarantees are:

        1. in a form acceptable to IIROC, and

        2. unlimited in amount, 

      4. and

      5. the consolidation meets the requirements in subsection 4117(2).
    2. A Dealer Member consolidating its financial position with a related company under subsection 4117(1) must comply with the following requirements or with other requirements acceptable to IIROC:
      1. eliminate inter‑company accounts between the Dealer Member and the related company,
      2. eliminate any minority interests in the related company from the Dealer Member’s capital calculation, and
      3. combine Dealer Member and related company financial information prepared as at the same date.

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