CSA Approve SRO Rule Amendments Consistent With Client Focused Reform Project

The Canadian Securities Administrators (CSA) have recently approved amendments to IIROC's Dealer Member Plain Language Rule Book (IIROC Rules) consistent with the CSA's client focused reform (CFR) project.

Among other things, the amendments to the IIROC Rules: (i) provide exemptions from know-your-client (KYC), know-your-product (KYP), suitability determination, and product due diligence obligations in respect of certain account types, such as order execution only and direct electronic access accounts; (ii) update account appropriateness rules to provide consistency with CSA suitability amendments and CFR rules; and (iii) update suitability requirements to incorporate language that is uniform with the CSA's CRF suitability requirements. Guidance outlining IIROC's expectations regarding compliance with product due diligence and KYP obligations was also released.