Technology, Transformation Top IIROC Compliance Priorities


IIROC recognized the pandemic accelerating technology adoption, particularly among small and medium-sized enterprises, and expects to publish guidance on how to manage key technology risks and controls and the importance of good governance before March 31st.

The report also addressed the consultation of Canadian Securities Administrators (CSAs) on the Canadian SRO framework. Highlighted it as one of the greatest potential areas for regulatory transformation in Canada, IIROC reiterated its support for a merger with the Mutual Fund Dealers Association of Canada (MFDA), claiming that it “will ultimately bring significant benefits to investors while saving on investment Industry could potentially hundreds of millions of dollars over the next 10 years. “

Given the interest of current and potential companies in a possible regulation of crypto assets, IIROC expects to release a joint notice with the CSA in the next few months to respond to stakeholder comments on a proposed framework for trading platforms for crypto assets Two Organizations were jointly released in 2019. After a hearing of members of the Crypto-Asset Working Group (CWG) on issues such as custody, insurance and empowerment, IIROC is currently looking for a second group of participants who can join for a period of one year.

In preparation for the implementation of Customer Oriented Reforms (CFRs) this year, IIROC has released new guidance focusing on product due diligence and know-your-product requirements, and plans for additional guidance regarding Know-Your-Client and Eligibility to be released earlier this year. In order to minimize the regulatory effort involved in the changeover to new compliance regulations, the IIROC has set December 31 as the implementation date of its Plain Language Rules, punctually with the implementation date of the changes in connection with the CFRs.

And while the ban on trailer commissions for OEO (Order-Execution-Only) companies won’t come into effect until June 1, 2022, IIROC is already reminding OEO companies to ensure that their systems and processes comply with the new rules, including the change the remuneration and fee regulations to adapt to the new requirements.


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