C-IIROC Client Focused Reforms
On Nov. 18, IIROC amended rules to align with client-focused reforms.
- IIROC amended rules relating to account appropriateness, know-your-client (KYC), suitability, conflicts of interest, as well as relationship disclosure information (RDI).
- Introduced new rules on product due diligence as well as know-your-product (KYP).
- To make requirements uniform with CSA client focused reforms (CFR), see #65866.
- Proposed product due diligence, KYP guidance for dealers, replaces Notice 09-0087.
- Public Comment Amendments
- Dealer must put person interest first for account appropriateness, C-IIROC Rule 3211.
- Enhanced suitability determination in C-IIROC Rule 3402, incorporate CSA language.
- Including requiring dealers to assess suitability based on an expanded list of factors.
- Exemptions from core regulatory obligations of account appropriateness, suitability, KYC, product due diligence, and KYP for certain account and client types or services.
- Also made updates to section references, language changes to reflect amendments.
- Housekeeping Amendments
- C-IIROC CFRs housekeeping amendments are duplicative of the CSA rule provisions.
- Incorporated CSA CFR language in areas of training, conflicts of interest and KYC.
- As well as relationship disclosure, pre-trade disclosure of changes, KYP, product due diligence, misleading communications, and general requirements to maintain records.
- Comments on the proposed amendments and new rules are due by Jan. 18, 2021.
||B/D; IA; Inv Co
||RN 20-0238, 20-0239, 11/18/2020; Citation: *C-IIROC Rule* 3211, 3402;
||Compliance; Financial; Legal; Operations; Product; Reporting; Suitability; Trading
||Derivatives; Equity; Fixed Income; Fund Mgt; Securities
|Reg. Last Update
Last substantive update on 11/19/2020