The Investment Industry Regulatory Organization of Canada has published for comment proposed amendments to clarify the application of rules relating to personal financial dealings with clients.
The main objectives of the proposed amendments, which with one exception came into effect in December 2013, are to:
- clarify which dealings should be managed (including avoided where appropriate) in accordance with IIROC’s general conflicts of interest rules, and which dealings are prohibited personal financial dealings;
- reduce the administrative burden associated with engaging in permitted personal financial dealings with certain family members; and
- allow registered representatives and investment representatives to continue to act as a client’s trustee or executor, subject to specific conditions and additional supervisory controls.
To allow for proper consideration of the proposed amendments, the deadline for the unwinding of existing trustee, executorship, power of attorney or similar arrangements is being extended to June 13, 2015.
Read: How to remove a trustee
The proposed amendments have been designed to balance the investor’s right to choose the individuals they appoint to manage their financial affairs. They also aim to protect investors from exposure to inappropriate conflict of interest situations.