CSA Relaxes Rules For Advisors Who Don't Pick Stocks

Effectively immediately, the Canadian Securities Administrators (CSA) will no longer require all advising representatives (ARs) to have stock-picking expertise. Instead, specialized client relationship managers (CRMs) whose advice to clients will not include stock-picking may register as CRM ARs without stock picking experience, subject to a set of standard terms and conditions on their AR registration. These changes will provide portfolio manager firms more flexibility to divide client service responsibilities between stock-picking teams and specialized CRMs.

The key terms and conditions applicable to CRM ARs will include the following:

No analysis or selection of individual securities. The CRM AR may not give advice that includes analysis of the securities of any specific issuer, or recommendations or decisions to buy, hold or sell the securities of any specific issuer, whether on a discretionary or a non-discretionary basis.