CIRO 2025 Dealer Compliance Report

Published on: Feb 4, 2025

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.
Regulators
CIRO
Entity Types
B/D; IA
Reference
PR, Rp, Bul 25-0035, 1/31/2025
Functions
Compliance; Cyber; Exams; Financial; Legal; Operations; Outsourcing; Registration/Licensing; Risk; Suitability; Technology; Trade Reporting; Trading
Countries
Canada
Category
National Regulator
State
N/A
Products
Cryptocurrency; Equity; Fixed Income; Fund Mgt; Mutual Funds; Securities; Short Sale
Rule Type
Guidance
Regions
Am
Rule Date
Jan 31, 2025
Effective Date
Jan 31, 2025
Rule ID
242193
Linked to
N/A
Reg. Last Update
Jan 31, 2025
Report Section
International