IIROC has republished for comment proposed amendments to the requirements for IIROC Dealer Members to disclose that they are regulated by IIROC.
The revised disclosure rules, as set out in the proposed IIROC Membership Disclosure Policy, are designed to inform the investing public which investment firms and individuals are regulated by IIROC and the requirements and regulations to which they must adhere.
Investment firms on the IIROC platform must meet capital requirements and ensure that their staff comply with stringent business and trading conduct rules, as well as meeting high proficiency and continuing education requirements.
“As a public interest regulator, IIROC believes it is important that investors know whether the firm or advisor they are dealing with is regulated, who regulates them and what professional standards are required,” said Wendy Rudd, IIROC senior vice president, Member Regulation and Strategic Initiatives.
The publication responds to comments received by IIROC following earlier requests for comment on proposed rule revisions, and includes changes to previously proposed amendments.
The new proposal would require Dealer Members to:
- Distribute the IIROC official brochure Why IIROC Matters to You, the Investor to new retail clients, with the flexibility to distribute the brochure in either print or electronic format.
- Include the IIROC logo on all client account statements.
- Link to the IIROC AdvisorReport on their website homepage and on any other IIROC Dealer Member webpage that includes a profile of an IIROC-regulated investment advisor. IIROC’s AdvisorReport is a searchable database that allows investors to learn more about advisors working at IIROC-regulated firms, including their background, qualifications and disciplinary history.
The proposal is open for comments for 30 days from today’s publication. Following approval of the final amendments, members will have a six-month transition period to implement the changes with the exception of the requirement to include the IIROC logo on client account statements. This requirement would be phased-in over a two-year period to enable firms to implement the changes in a cost-effective manner.