(1) Sections 11.1 and 11.2 do not apply to a member of IIROC.
(1.1) Except in Québec, sections 11.1 and 11.2 do not apply to a member of the MFDA.
(1.2) In Québec, sections 11.1 and 11.2 do not apply to a mutual fund dealer.
(1.3) Section 11.1 does not apply to CDS Clearing and Depository Services Inc.
(2) A participating dealer that is a member of an SRO referred to in subsection (1) or (1.1) or, in Québec, that is a mutual fund dealer, must permit the mutual fund and the principal distributor, through their respective auditors or other designated representatives, to examine the books and records of the participating dealer to verify the participating dealer’s compliance with the requirements of its association or exchange, or the requirements applicable to the mutual fund dealer under the regulations in Québec, that relate to the commingling of cash.