No Note Taking Requirements In CFRs? Think Again!

An advisor told me he is fighting with his compliance department, which insists that note taking is required under the client-focused reforms (CFRs). The advisor scoured the regulations and found nothing that states "note taking" is required. Therefore, he concluded he has no obligation to take notes.

Do you agree?

If you too think notes are not required, it may be because you do not understand that the CFRs are in code. I will help you crack the code.

There are few specific references to "notes" or "note taking" in the regulation (NI 31-103) or companion policy (31-103CP, which explains how to fulfil the obligations in the national instrument) or even in the rules of the Canadian Investment Regulatory Organization (CIRO). There is, however, language that requires registered firms/dealers to establish and maintain compliance with policies and procedures (Part 11 of NI 31-103), which includes to "document" information and "demonstrate" compliance by