CSA Adopt Changes To Registration Rules To Protect Older And Vulnerable Clients

Rule changes will require registrants to take reasonable steps to obtain the name of a client's trusted contact person; allow for temporary account holds.

The Canadian Securities Administrators recently announced the adoption of rules intended to strengthen the protection of older and vulnerable investors. Specifically, amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) will require that registrants, as part of the "know your client" (KYC) process, take reasonable steps to obtain the name and contact information of a client's "trusted contact person", along with consent allowing the registrant to contact the trusted contact person if concerns arise with respect to the client's mental capacity or possible financial exploitation.