TORONTO, May 29, 2014 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) has received approval from the Canadian Securities Administrators (CSA) to implement the next set of new Client Relationship Model (CRM) amendments that take effect July 15, 2014.
The approved changes relate to the first series of changes as part of CRM2, which will improve the transparency of account information through enhanced disclosure. The reforms that take effect on July 15, 2014 include:
- new requirements that mandate pre-trade disclosure of fees and charges associated with pending investment purchase and sale transactions;
- enhanced debt security trade confirmation disclosure of compensation taken by the dealer on the trade; and
- a new relationship disclosure requirement that: identifies an appropriate investment performance benchmark and other benchmark options; and explains how these benchmarks may be used by investors to assess the performance of their investments.
Other aspects of IIROC's CRM2 reforms relating to account fees and charges, as well as account performance, were published for lengthy comment periods which recently concluded. They are being reviewed and any revised changes will still require approval before taking effect over the next two years.
The IIROC notice contains details of the new requirements and outlines changes to existing IIROC rules that reflect these CRM reforms.
- Rules Notice: Client Relationship Model - Implementation
- Rules Notice: Client Relationship Model – Guidance
- Rules Notice: Know your client and suitability - Guidance
- Rules Notice: Client Relationship Model - Phase 2 - Implementation
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
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