IIAC Blog

March 4, 2016

A ‘Win’ for the IIAC – CRM Suitability Assessment (IIAC Blog)

Ian Russell

Ian Russell

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At the urging of the IIAC’s Venture Market Working Group, IIROC issued a Client Relationship Model (CRM)—Frequently Asked Questions (FAQ) Notice clarifying dealers’ suitability assessment obligations for certain clients with a high-risk tolerance. The FAQ specifically addressed speculative investing or trading, such as in TSX Venture Exchange (TSXV) listed securities. The FAQ clearly articulates the portfolio approach to suitability, and does not prohibit venture stocks in accounts/portfolios that are not high risk. The FAQ also clarifies the approach dealers must adopt to assess suitability when a client wishes to engage in speculative trading and has tolerance for high levels of risk.

The IIROC FAQ is an important guide for Member firms, and provides dealers with greater confidence to distribute venture listed stocks to individual investors.

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