IIROC announces implementation of remaining Client Relationship Model (CRM2) reforms

Enhancing investor protection through increased transparency

TORONTO, Jan. 19, 2015 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) has received approval from the Canadian Securities Administrators (CSA) to implement the second (and final) set of new Client Relationship Model (CRM2) amendments that will be phased-in on July 15, 2015 and July 15, 2016.

The approved changes relate to new requirements to report account fees/charges and account performance and are generally consistent with the CSA's CRM2 amendments. The IIROC notice contains details of the new and amended requirements and when they take effect, and outlines changes to existing IIROC rules that reflect these CRM reforms.

As part of its consultations, IIROC received requests to defer the final implementation dates to January 1, 2016 and January 1, 2017, respectively. IIROC together with the CSA are considering this request and will issue a separate notice when a decision is made.

"With enhanced disclosure there will be greater transparency of account information which should result in more meaningful conversations between advisors and their clients," said IIROC President and CEO Andrew Kriegler. "Now that all elements of the Client Relationship Model reform initiative have been approved, we will continue to work with the industry and stakeholders to focus on effective implementation." 

IIROC recently compiled and issued a list of FAQs to address common implementation questions. This document will be updated and reissued on a periodic basis to assist members. IIROC is also developing guidance to clarify new/amended rule requirements relating to account relationship disclosure, and the Know Your Client (KYC) and suitability assessment obligations.

Related documents:

o   Rules Notice: Client Relationship Model - CRM1 Implementation

o   Rules Notice: Client Relationship Model - CRM1 Guidance

o   Rules Notice: Client Relationship Model - 2014 CRM2 - Implementation

o   Rules Notice: Client Relationship Model – 2015 and 2016 CRM2 - Republication

o   Rules Notice: Client Relationship Model – 2015 and 2016 CRM2 – Implementation

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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

Related Links

http://www.iiroc.ca