Canadian Stock Transfer Restrictions

Introduction

To comply with regulations regarding the sale of unregistered securities IBKR will only accept transfers1 of blocks of Canadian stocks where the customer can confirm the shares were purchased on the open market or registered with the securities regulator applicable to the issuer’s province or territory.  

Procedures
If IBKR receives an inbound transfer containing a large quantity of low-priced Canadian shares (generally trading below CAD 2.00), IBKR reserves the right to restrict the sale of those shares unless the client provides appropriate documentation establishing that the shares are not subject to any restricted or seasoning period because they were either purchased on the open market (i.e., on a public exchange through another broker) or were purchased in an exempt offering at least 4 months ago.  
 
IBKR clients can prove that shares are not subject to any resale restrictions by providing a brokerage statement or trade confirm from a reputable broker reflecting the purchase of the shares on a public exchange. Alternatively, clients can provide documentation establishing that the shares transferred in were issued at least four months ago.  

NOTE: Customers are free to transfer out any shares we have restricted at any time.
 
For information regarding restrictions on U.S. Microcap stocks, please see KB2892.
 
 
This includes transfers by any method (e.g., ATON), conversion of U.S. listings to their Canadian equivalent via “Northbound” transfer and transfers to cover existing short positions.