Appointment of a capital market intermediary
The appointment by an issuer of a capital market intermediary must be made under a written engagement agreement before the capital market intermediary conducts any specified activities under paragraph 21.1.1 of the Code of Conduct.
3A.34The written engagement agreement of a capital market intermediary pursuant to rule 3A.33 must at least specify the following:
(1) the roles and responsibilities of the capital market intermediary; (2) the fee arrangement (including the fixed fees to be paid to the capital market intermediary as a percentage of the total fees to be paid to all syndicate CMIs); (3) the time schedule for payment of the fees to the capital market intermediary; and (4) (for placing in connection with a New Listing) the obligations of the new applicant and its directors to provide the assistance specified in rule 3A.46.
Note: The total fees in this rule, also commonly referred to as “underwriting fees”, include fixed and discretionary fees for providing one or more of the following services to the issuer: providing advice, marketing, bookbuilding, making pricing and allocation recommendations and placing the equity securities or interests (including equity securities, interests in a REIT, stapled securities and securities of an investment company (as defined in rule 21.01)) with investors.