CIRO proposes rule amendments to harmonize advisor compensation

Adoption of incorporated advisor compensation option would deliver on key integration priority, providing equity, flexibility and consistency for advisors

TORONTO, July 9, 2026 /CNW/ - Today, the Canadian Investment Regulatory Organization (CIRO) published proposed rule amendments for comment that will harmonize advisor compensation by adopting a new incorporated advisor compensation option open to all client-facing Approved Persons sponsored by CIRO Dealer Members.

Under the existing directed commission compensation option, advisors sponsored by a mutual fund dealer or firm registered as both a mutual fund dealer and investment dealer can have a portion of their compensation paid through an unregistered corporation (except in Alberta). However, this option is not available for advisors registered with investment dealers, who can only be paid by their firms directly.

Finalizing proposed rule amendments relating to the adoption of an incorporated advisor compensation option is a key integration priority identified in CIRO's 2027 Annual Priorities and completes the advisor compensation harmonization objective set out in CIRO's three-year Strategic Plan.

"Harmonizing advisor compensation is an important way that CIRO is demonstrating its commitment to providing more efficient and consistent regulation," says Alexandra Williams, Senior Vice-President, Strategy, Innovation and Stakeholder Protection at CIRO. "Adopting an incorporated advisor compensation option will provide flexibility for advisors and address the lack of tax certainty associated with the current directed commission approach."

Following extensive stakeholder consultation, the proposed rule amendments published for comment today take the following approach towards harmonized advisor compensation:

• retaining the current options for any client-facing Approved Persons to be an employee or an agent of their sponsoring dealer;
• repealing the directed commission arrangement option currently available to certain client-facing Approved Persons; and
• introducing the option for any client-facing Approved Persons to enter into an incorporated advisor arrangement.

The advisor incorporation compensation option being proposed ensures that key investor protection-related regulatory obligations owed to clients are maintained.

Implementation of CIRO's proposed rule amendments, if approved by the Canadian Securities Administrators (CSA), will require changes to securities legislation.

The proposed rule amendments are available in full on CIRO's website.

About CIRO 

The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca. 

SOURCE Canadian Investment Regulatory Organization (CIRO)

Ariel Visconti, Senior Corporate Communications and Public Affairs Specialist, 416-526-8240, [email protected]