On Jan. 31, CIRO published annual report on compliance for dealers.
CIRO published annual compliance report for 2025, Helping Dealers with Compliance.
Report summarizes on current issues, challenges regulated dealers should focus on to improve investor protection, help focus on supervision and risk-management efforts.
Report Highlights
In 2024, several jurisdictions, including Canada, shortened normal trade settlement cycle from T+2 to T+1; overall, transition smooth, did not lead to significant fail rates.
Cyber continues to be key business risk due to potential impact; must implement necessary controls to protect clients, personal info, critical systems, and applications.
Completed first examination of crypto asset trading platforms (CTP) in fiscal 2024, will be completing 2 field examinations in current FY; take top-down, risk-based approach.
Provided review of trading, including order markers and client identifiers, short selling and extended failed trades, automated order system and risk management controls.
On conduct and supervision, discussed Phase 2 client focused reforms (CFR) sweep, on evaluate compliance with know your client (KYC), know your product (KYP), suitability.
Also reviewed derivatives rule modernization and focused sales practices review.
Provided review on topics of registration and proficiency, and membership issues.
Compliance Integration
Continue concentrate efforts on integration of compliance groups, harmonize work.
Described some of compliance integration work completed, including compliance structure; former investment and mutual fund dealer compliance teams integrated.
CIRO Montreal office responsible for oversight of mutual fund dealers (MFD) with head office in Quebec; also BCC examinations of Quebec-based MFD under power of AMF.
Dealers received invitation to complete new and improved 2024 annual risk questionnaire (ARQ), including MFDs, #221708; also introduced a new ARQ platform.
Annual risk assessment will be completed using new risk models as of Dec. 31, 2024.
Aligned examination cycles, each compliance area now using 1- to 4-year exam cycle.
All dealers will receive 2024 risk trend report (RTR) based on newly created harmonized risk models; RTR inform dealers of risk ranking, respective exam cycle.
