Greater access to educational resources from OEO dealers will empower DIY investors to make informed investment decisions
TORONTO, Aug. 12, 2025 /CNW/ - The Canadian Investment Regulatory Organization (CIRO) is proposing new guidance that will allow Order Execution Only (OEO) dealers to expand the range of educational resources they can offer to clients, empowering do-it-yourself (DIY) investors to make informed investment decisions for themselves.
DIY investors are increasingly turning to unregulated sources such as online forums, social media and finfluencers to help them make important financial decisions. Recent research from CIRO revealed that many DIY investors were open to additional tools through their DIY investing platform that would provide further information, research, alerts, or education. Many also expressed a desire for more regulation and safeguards to prevent the spreading of misinformation through social media.
At the same time, there is a growing industry consensus that the present limitations on decision-making supports being offered by OEO firms are preventing important information and warnings from reaching DIY investors. To enable greater access to regulated advice, CIRO identified updating the existing guidance on OEO account services as a priority for 2026.
"Relying on unverified sources of information could put investors at significant risk of financial harm," says Alexandra Williams, Senior Vice-President, Strategy, Innovation, and Stakeholder Protection at CIRO. "Giving investors greater access to high-quality, trustworthy and timely information from OEO dealers will not only help them make informed, confident investment decisions, but could also reduce their reliance on unregulated sources that may be providing incomplete, biased or misleading advice."
The proposed guidance broadens the range of supports that OEO dealers can offer to clients without violating the rule that prohibits them from making recommendations. While the current guidance restricts OEO dealers from providing communications that could "reasonably be expected to influence" investors, the new guidance clarifies that OEO dealers are allowed to provide informative resources and decision-making supports to clients as long as they do not endorse a specific investment decision and are provided with adequate safeguards. OEO dealers will also be allowed to send targeted, proactive communications to clients as long as they are purely educational and do not endorse any specific investment decisions.
Decision-making supports can include:
- alerts and notifications
- self-assessment tools
- sample portfolios
- informative and educational material
Key safeguards include:
- providing clients with clear information regarding the proper use and limitations of any decision-making supports offered;
- addressing or avoiding material conflicts of interest; and
- ensuring that all decision-making supports are regularly monitored and updated.
"The new approach outlined in the proposed guidance gives dealers the flexibility to innovate and better service clients' needs in the OEO channel while ensuring the necessary safeguards are in place to maintain investor protection," says Williams.
About CIRO
The Canadian Investment Regulatory Organization (CIRO) is the national 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)
Media contact: Ariel Visconti, Senior Corporate Communications and Public Affairs Specialist, 416-526-8240, [email protected]
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