Search
Additional Information on Institutional Qualification Requirements for Permitted Client Status
Please note: The information below is for certain Canadian institutional clients. Individual Canadian clients with questions about Permitted Client certification should review the information available here.
The term “Permitted Client” is defined in Section 1.1 of National Instrument 31-103. A key way for institutions to qualify is to have at least CAD $25 million in net assets as shown on the institution’s most recently prepared financial statements. This test focuses on net assets (assets minus liabilities), not gross assets.
If your institution doesn’t qualify as a Permitted Client under the CAD $25 million in net assets test, your institution may qualify as a Permitted Client under one of the other categories of the Permitted Client definition. Please review the categories included in the definition of “Permitted Client” below. If your institution qualifies under one of these other categories, please contact Support
Please note that this information is provided to you only as a guide. If you have any questions about whether your institution qualifies as a Permitted Client, you should consult your institution’s legal advisor.
Under the Terms of Service, the institution you represent is required to provide accurate and truthful information and promptly update its Kraken Account information. If you certify on behalf of your institution that the institution is a Permitted Client and your institution’s status changes, the institution must notify Kraken promptly.
a.  A Canadian financial institution or a Schedule III bank, which means:
  • An association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of that Act; or
  • A bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or league that, in each case, is authorized by an enactment of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction in Canada; or
  • An authorized foreign bank named in Schedule III of the Bank Act (Canada)
b.  The Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
c.  A subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;
d.  A person or company registered under the securities legislation of a jurisdiction of Canada as an adviser, investment dealer, mutual fund dealer or exempt market dealer;
e.  A pension fund that is regulated by either the federal Office of the Superintendent of Financial Institutions or a pension commission or similar regulatory authority of a jurisdiction of Canada or a wholly-owned subsidiary of such a pension fund;
f.  An entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (e);
g.  The Government of Canada or a jurisdiction of Canada, or any Crown corporation, agency or wholly-owned entity of the Government of Canada or a jurisdiction of Canada;
h.  Any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;
i.  A municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;
j.  A trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a managed account managed by the trust company or trust corporation, as the case may be;
k.  A person or company acting on behalf of a managed account managed by the person or company, if the person or company is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction;
l.  An investment fund if one or both of the following apply:
    • the fund is managed by a person or company registered as an investment fund manager under the securities legislation of a jurisdiction of Canada;
    • the fund is advised by a person or company authorized to act as an adviser under the securities legislation of a jurisdiction of Canada;
m.  In respect of a dealer, a registered charity under the Income Tax Act (Canada) that obtains advice on securities to be traded from an eligibility adviser, as defined in section 1.1 of National Instrument 45-106 Prospectus Exemptions (NI 45-106) or an advisor registered under the securities legislation of the jurisdiction of the registered charity;
n.  In respect of an advisor, a registered charity under the Income Tax Act (Canada) that is advised by an eligibility advisor, as defined in section 1.1 of NI 45 106, or an advisor registered under the securities legislation of the jurisdiction of the registered charity;
o.  An individual who beneficially owns financial assets, as defined in section 1.1 of NI 45-106, having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds CAD $5 million;
p.  A person or company that is entirely owned by an individual or individuals referred to in paragraph (o), who holds the beneficial ownership interest in the person or company directly or through a trust, the trustee of which is a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction; 
q.  A person or company, other than an individual or an investment fund, that has net assets of at least $25 million as shown on its most recently prepared financial statements;
r.  A person or company that distributes securities of its own issue in Canada only to persons or companies referred to in paragraphs (a) to (q).