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New CSA rules allow portfolio managers to use client relationship management specialists

By The IJ Staff | June 11 2020 03:45PM

Photo: Freepik

The Canadian Securities Administrators (CSA) announced June 10 that, effective immediately, portfolio managers may sponsor individuals for registration as client relationship management specialists – advising representatives whose advice to clients does not include stock-picking.

Many portfolio managers now have an operating model that divides responsibilities between specialized client relationship managers and stock-picking teams,” the CSA writes in its statement announcing the changes. “The CSA is updating its practice of requiring all advising representatives to have stock-picking expertise.”

A condition of a client relationship manager’s registration will require them to take steps to ensure that clients understand the different roles of the team members who serve them – a client relationship management specialist would be required to tell clients about the limits of the advice they can give.

Louis Morisset, CSA chair, president and CEO of the Autorité des marchés financiers, says “these steps ensure our experience requirements for advising representatives are responsive to evolving business models and more closely match the services they provide to clients.”

Going forward, the CSA says it will monitor and review the experience of portfolio managers that choose to operate with registered client relationship management specialists, which may lead to further changes in the future.

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