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Article 15
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A securities firm conducting business relating to custody and investment of funds on behalf of customers may charge management fees at a rate determined between the securities firm and the customers.
Any bank interest accrued on customer funds held in custody by the securities firm in the cash management account, and any gains or income arising from any investment made by the securities firm in its name using the funds from the cash management account, shall be the income of the customers. The securities firm shall, in the year in which the income is accrued, withhold tax from the payment of income to each entitled customer in accordance with the Income Tax Act and the associated regulatory provisions and issue a withholding certificate accordingly identifying the customer as the taxpayer.
With respect to the bank interest accrued on customer funds held in custody in the cash management account as described in the preceding paragraph, the securities firm shall, after deduction of necessary fees and applicable taxes, settle account on a half-yearly basis and return any remaining balances to each relevant customer by the end of January and July each year, and the funds so returned may only be transferred to the account for book-entry transfer of securities and funds opened by the customer for engaging in securities trading on the exchange or over-the-counter market.
With respect to the gains or income arising from any investment made by the securities firm in its name using the funds from the cash management account, the securities firm shall, after deduction of the management fee specified in paragraph 1 and any applicable taxes and other necessary fees, settle account on a yearly basis and return any remaining balances to each relevant customer by the end of December each year, and the funds so returned may only be transferred to the account specified in paragraph 3. If a customer terminates early the agreement for the business services contemplated herein, the securities firm may return early to the customer the portion of income earned on investment on the part of the customer.
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