CIRO Client Research Project
Ciro will be undertaking a client research project for which they will request investment dealers and mutual fund dealers to provide detailed information on the investments held by their retail clients as at December 31, 2024.
CIRO Rule Consolidation Project Update
CIRO published their Annual Priorities for fiscal 2024, on June 1, 2023. One of the priorities, is harmonizing CIRO’s regulatory approach, including consolidating the Investment Dealer and Mutual Fund Dealer rules. On June 30, 2023, CIRO published a Rule Consolidation Project Update.
Regulators addressing ‘finfluencers’
The term ‘finfluencer’ refers to online influencers, marketing financial products and services. This use of social media poses risks, including influencers promoting products they don’t understand and targeting younger investors who trust the advice. The U.K.’s Financial Conduct Authority, has proposed new guidance to address this space.
Fifth province stepping into space of Title Protection regulations
Manitoba is looking to join Ontario, Quebec, Saskatchewan and New Brunswick, by proposing regulations to address the use of the “financial planner” and “financial advisor” titles. With multiple provinces regulating this space, Manitoba has asked for comments and feedback to address the issue of harmonization. The consultation period ends September 30, 2023.
CIRO proposing a new proficiency model
CIRO is proposing a shift to an exam-based approach to industry proficiency. This approach focuses on assessments based on competencies, not courses. While the proposed date to implement the new proficiency model isn’t until 2026, CIRO aims to publish their new rule by Fall 2024. The consultation period ends September 20, 2023.
Canada Disability Benefit Act Receives Royal Assent
Some really interesting and exciting news was announced regarding a new federal benefit meant to support working-age Canadians with disabilities; recently, the Canada Disability Benefit Act received royal assent. As we know, financial stability and financial planning is so important for this client sector as their financial needs may exacerbate or vary over time, or as they age, or depending on the type and severity, of the disability. While much is still unknown about this new benefit (e.g., who will qualify, benefit amounts, etc.), read more to prepare for the effective date of the new law which will be no later than one year from June 22, the day the act, formerly Bill C-22, received royal assent.
OBSI adds two consumer interest directors to board
The Ombudsman for Banking Services and Investments (OBSI) made an important announcement regarding structural and organizational changes following its public consultation on governance. In part, two consumer interest directors are to be added to the board in the hopes of achieving greater consumer representation. You can read the full release describing this and other changes here. Maureen Jensen, OBSI Board Chair has said: “Based on the input received from stakeholders, we are making important changes to further enhance the consumer and investor voice on our board, to create a broader and more flexible approach for industry director selection, and to increase our stakeholder outreach programs.”
Climate Risk Forum: Help shape our approach to climate-related risks
Today, the Office of the Superintendent of Financial Institutions (OSFI) launched the Climate Risk Forum (CRF) to build awareness and capacity within Canada’s financial sector to respond to climate-related risks. The CRF is a virtual forum used by OSFI to organize its climate engagement activities. It connects OSFI with domestic partners and stakeholders to help the Canadian financial sector navigate the challenges of managing climate-related risks.
FSRA targets advisor chargeback in updated DSC proposal
With the DSC ban now in effect for segregated funds, firms with insurance advisors selling in Ontario will be interested in reviewing FSRA’s proposed amendment which addresses the removal of DSCs on existing segregated fund contracts. It should be noted that the proposal would apply to transactions that occur after the amendment takes effect (i.e., the amendment won’t be retroactive). The consultation period ends June 30. For clarity, FSRA has created this flowchart on the last page of the proposal.
NEW SRO Changes its Name to Canadian Investment Regulatory Organization
In April 2023, members of the New Self-Regulatory Organization of Canada (New SRO) approved the new name of the organization to Canadian Investment Regulatory Organization (CIRO). This change of name is a significant step forward in the amalgamation of the two, previously separate, regulatory organizations the Mutual Fund Dealers Association of Canada (MFDA) and the Investment Industry Regulatory Organization of Canada (IIROC). On June 1, 2023, CIRO executives and employees opened the Toronto markets to commemorate the occasion.
The information contained on the Association of Canadian Compliance Professionals (“ACCP”) website is for general information purposes only and is the opinion of the writer(s). This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. We strongly recommend that you seek appropriate, qualified professional advice before acting or omitting to act based on any information provided on the ACCP website.
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