Principal-protected Notes Regulations

Marginal note:Institutions that have made a public commitment

6 The following rules apply in respect of an agreement to issue a principal-protected note that is entered into by electronic means or by telephone by an institution that has made a public commitment referred to in paragraph 3(2)(c) of the Financial Consumer Agency of Canada Act to allow an investor to cancel the purchase of a principal-protected note within two or more days after the day on which the agreement is entered into or, if it is later, the day on which the disclosure required by this section is provided:

• (a) if the agreement is entered into by electronic means, the institution is not required to make the oral disclosure referred to in section 3 but the institution must provide the written disclosure referred to in that section before entering into the agreement and must provide the telephone number of a person who is knowledgeable about the terms and conditions of the note before, or without delay after, entering into the agreement; and

• (b) if the agreement is entered into by telephone, the institution must provide the oral disclosure referred to in section 3 before entering into the agreement and must provide the written disclosure referred to in that section before, or without delay after, entering into the agreement.