CIRO Fiscal Year 2024 Annual Priorities
CIRO released their 2024 Annual Priorities on June 1, 2023. The Annual Priorities summarizes current regulatory changes and issues that CIRO-regulated firms should focus on. The themes of the Annual Priorities encompass continuing to develop the CIRO brand, promoting initiatives related to investor protection, and supporting industry transformation.
Canadian financial sector faces rising cybersecurity challenges: Report
According to new data from LexisNexis Risk Solutions, the Canadian financial services industry is seeing a surge in cybercrime and fraud. The report found that Canadian financial services organizations are among the biggest targets. Particularly vulnerable areas within the industry include new account openings and payments.
Firms falling short in conflict compliance
In a recently published joint Staff Notice, setting out the results of their regulatory reviews of industry compliance with conflict-of-interest provisions, the Canadian Securities Administrators (CSA) and CIRO indicated that only about one-fifth of the firms they examined, are meeting their obligations under the client-focused reforms (CFRs).
Pay-to-play firm/advisor ranking contests and lists contravene NI 31-103
Regulators say advisor awards based on production may mislead clients. The CSA and CIRO called on firms and registrants, to remove references to award or recognition, in marketing and client communications, including on webpages or LinkedIn profiles.
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.
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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