Development Of The Client Relationship Model

Implementation of the so-called "client relationship model"¹ remains a key objective of the Canadian securities regulators’ Registration Reform Project. Proposed National Instrument 31- 103 Registration Requirements² would mandate delivery by registered dealers and portfolio managers (but not investment fund managers) of a specified relationship disclosure document to clients who do not qualify as "accredited investors"³. The relationship disclosure document, or RDD, is an important element of the client relationship model and is proposed by NI 31-103 to be mandatory for non-SRO dealer and portfolio manager registrants. The Canadian self-regulatory organizations for dealers – the Investment Dealers Association of Canada and the Mutual Fund Dealers Association of Canada - are expected to publish new rules for their members that would mandate a similar RDD to be given by those dealers to their non-accredited investor clients.