IIROC strategy looks to accommodate new business models

By The IJ Staff | April 10 2018 01:30PM

Photo: Freepik

The Investment Industry Regulatory Organization of Canada (IIROC) announced April 9 that it is applying a three-part strategy to accommodate new business models, in light of changing demographics, investor behaviour and technology.

The strategy includes the issuance of final guidance for order execution only (OEO) firms to clarify the products, tools and information these firms can provide to investors under its existing rules.

Faster and more efficient

The regulator says it is also enhancing its process for reviewing and approving changes in dealers' business models, allowing for a faster, more-efficient process and ensuring existing rules are applied as flexibly as possible, while adhering to the underlying principles.

IIROC is also undertaking a study with Accenture, “involving a focused consultation with industry participants to understand how current rules impact the evolution of advice and service offerings, and where there may be opportunities for improvement,” says the regulator.

Facilitating innovation

"IIROC is committed to interpreting its current rules as flexibly as possible, or changing them if necessary, to accommodate new service offerings where appropriate, without compromising investor protection or choice," says Wendy Rudd, senior vice-president, Member Regulation and Strategic Initiatives, IIROC. "Our goal is to facilitate innovation and accommodate changes in business models to meet investor needs."

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