The Canadian Investment Regulatory Organization (CIRO) is publishing for comment proposed amendments to the Investment Dealer and Partially Consolidated Rules (IDPC, the Draft Rule Amendments) reflecting the proposed proficiency model, for a period ending September 17, 2024.
The Draft Rule Amendments focus on the proficiency regime relating to individuals employed by investment dealers approved by CIRO under the IDPC. The regulator advises any future changes to the proficiency regime relating to mutual fund dealers will be made in collaboration with the Canadian Securities Administrators (CSA).
The Draft Rule Amendments are intended to deliver the following benefits:
- Raise the proficiency bar;
• Lower the cost of licensing and entry barriers for end-users;
• Improve alignment to firm training; and,
• Improve program currency and relevancy and be more responsive to industry change.
As noted, one of the benefits of the Draft Rule Amendments is to raise the level of proficiency of dealer Approved Persons. Highlights of the proposed proficiency model are as follows:
- Exams for each Approved Person category based on the published competency profiles, including a general exam for some Approved Person categories;
- No mandatory courses as prerequisites to exams;
- Mandatory conduct training upon approval;
- Continuing Education (CE) training on topics mandated by CIRO annually;
- Baseline education requirements for Registered Representatives (RRs) to include a diploma, degree or four years of relevant work experience; and,
- A greater role for CIRO in new program design and ongoing delivery.
The Draft Rule Amendments are part of the ongoing Rule Consolidation Project. They incorporate the previously proposed clarifying amendments that will be implemented in the next few months.
The proposed amendments to the Investment Dealer and Partially Consolidated Rules are available for download from CIRO’s website.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
