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Dealers still doing inadequate KYC, finds IIROC

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Regulators sh’d scrutinize Dealers whether they employ competent and qualified staff to adequately supervise business practice. Dealers high staff turnover raises a serious concern on the senior management’s competence, professionalism and operations. Dealer systems sh’d be sophisticated, include “Client KYC Vs Portfolio” comparison, annualized ROR and cumulative commission and charges paid to dealers.

Regulators sh’d review significant DSC charges as it is a failure in suitability and take action. If Branch Managers review carefully most mistakes and wrongdoing/suitability issues can be eliminated. “Client Disclosure and “suitability” are different and Dealers fail to have policies to protect investors.

Dealers be held accountable for approved content used by APs including on websites, social media that may include misleading business titles and credentials that have no relevance or unworthy. It is shocking the Canadian investors are at a receiving end!

Friday, Jan 19, 2018 at 3:22 pm Reply


Most issues are originating from dealers due to their failed hiring policies, not identifying fraudulent resumes, apply “who you know” policies and hire without sound industry experience, relevant academic and professional qualifications. One Dealer Senior Compliance staff always say that “DSC to DSC (churning) is not illegal” although it is certainly not in the best interest of investors.

Simply passing easy multiple choice exams, without basic industry knowledge/experience, even if they are previously fired for incompetence in a junior job by another employer, one can become a Director or VP Compliance in Canada. Regulators should review compliance staff resumes/past experience /credentials carefully to ensure whether they are capable to perform their duties in the best interest of clients and ensure the integrity of the industry. Regulators may wonder why if Compliance staff are adequately experienced and qualified, why they seek advisors to manage their personal investments?

Friday, Jan 19, 2018 at 10:48 am Reply