Client Focused Reforms - IIROC Releases Proposed Guidance For Know-Your-Client And Suitability Determination

On June 21, the Investment Industry Regulatory Organization of Canada (IIROC) released proposed guidance intended to assist dealers in understanding and complying with new know-your-client (KYC) and suitability determination requirements set to take effect on December 31, 2021.

As we discussed most recently in a March 2021 post, the Canadian Securities Administrators have adopted amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and its Companion Policy known as Client Focused Reforms (CFRs), which are intended to help ensure that the interests of the client come first in the client-registrant relationship. While some of the rules, such as those regarding conflicts of interest and referral arrangements, will come into effect on June 30, 2021, new KYC rules to require firms to collect an expanded list of information, and changes to the suitability determination rules, among others, will