At OTC Markets Inc., we are dedicated to maintaining the highest standards of compliance with Canadian laws and regulations governing financial services, including the protection of personal information and fair trading practices. As a member of the Canadian Investment Regulatory Organization (CIRO) and the Canadian Investor Protection Fund (CIPF), we ensure that our operations are transparent, secure, and trustworthy for all our users

1. MEMBERSHIP AND REGULATORY COMPLIANCE

OTC Markets Inc. is a fully regulated entity, committed to adhering to the highest standards of financial industry practices in Canada. We are a member of:

1.1 Canadian Investment Regulatory Organization (CIRO):

The CIRO (formerly known as the Investment Industry Regulatory Organization of Canada (IIROC)) regulates firms and individuals involved in the trading of securities, including OTC markets. As a member, we are subject to CIRO’s regulatory framework, which ensures that we follow best practices for market integrity, fairness, and transparency.

1.2 Canadian Investor Protection Fund (CIPF):

OTC Markets Inc. is also a member of the Canadian Investor Protection Fund (CIPF), which provides protection for eligible clients in the event that a member firm becomes insolvent. This fund helps protect clients against the loss of their securities or cash if the firm is unable to meet its financial obligations due to insolvency.

1.3 Distribution of CFDs in Canada:

OTC Markets Inc. is authorized to distribute Contracts for Difference (CFDs) in Canada, acting as the principal in these transactions. As a regulated entity, we ensure compliance with all applicable Canadian laws and regulations surrounding financial products such as CFDs. Our adherence to these regulatory standards provides added confidence and protection to our users.

2. CLIENT PROTECTION

2.1 Investor Protection Under CIPF:

Eligible clients who are residents of Canada are entitled to protection under the CIPF, which provides insurance in the case of insolvency. This protection is subject to the terms and conditions set by the Fund, which may limit coverage in certain situations. We encourage our clients to familiarize themselves with the CIPF protection limits to understand how their funds and assets are protected.

2.2 Know Your Client (KYC) and Anti-Money Laundering (AML) Compliance:

As part of our regulatory obligations, we conduct strict Know Your Client (KYC) and Anti-Money Laundering (AML) procedures. These procedures are in place to prevent fraud, money laundering, and other illicit activities within the financial markets. All clients must complete verification processes, including identity verification, before using certain features of the Platform, especially for trading CFDs and other financial instruments.

2.3 Data Protection and Privacy Compliance:

We also comply with the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, ensuring that your personal data is handled in accordance with Canadian privacy standards. This means your personal and financial information is securely processed, stored, and used only for the purposes specified in our Privacy Policy.

3. COMPLIANCE WITH CANADIAN FINANCIAL LAWS

3.1 Financial Regulations and Standards:

All financial services and trading activities provided by OTC Markets Inc. are subject to Canadian financial regulations, including the Securities Act and other applicable rules issued by provincial and federal securities regulators. We ensure that our operations adhere to the legal frameworks that protect investors and maintain market integrity.

3.2 Monitoring and Auditing:

In compliance with CIRO and CIPF standards, we regularly monitor our systems and trading activities to ensure compliance with all applicable laws. This includes conducting internal and external audits to ensure that our business operations adhere to the regulatory guidelines set forth by Canadian authorities.

3.3 Cross-Border Transactions and Regulations:

If you are located outside Canada, be aware that we also comply with the relevant financial regulations in other jurisdictions where we operate. In such cases, OTC Markets Inc. ensures that transactions and client interactions comply with the local regulations governing financial services, data protection, and privacy laws in those regions.

4. CLIENT RESPONSIBILITIES

As a client of OTC Markets Inc., you have certain responsibilities to ensure compliance with applicable laws and regulations:

4.1 Accurate Information:

You must provide accurate and complete information during registration, identity verification, and trading activities. False or misleading information can result in restrictions on your account and potential legal consequences.

4.2 Adherence to Terms:

By using the Platform, you agree to comply with all Terms and Conditions and Privacy Policy outlined by OTC Markets Inc.. You must also ensure that any financial transactions and activities you engage in are done so in compliance with Canadian laws, including the regulations governing the trading of financial instruments.

4.3 Reporting Suspicious Activity:

You are responsible for promptly reporting any suspicious activity, including fraud, money laundering, or unauthorized transactions, to OTC Markets Inc.. We maintain a robust system for detecting and addressing fraudulent activities and suspicious transactions, in compliance with AML and KYC regulations.
CONTACT INFORMATION AND COMPLIANCE INQUIRIES
If you have any questions about our compliance policies or require further information regarding our regulatory memberships, please feel free to contact us:

OTC Markets
D West Tower, 70 York Street,
Toronto, ON M5J 1S9, Canada
Email: [email protected]