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 … Continue reading
Tag Archives: CRM
The second and final phase of the Client Relationship Model (CRM) will take effect on July 15, 2016, a scant nine months away. This date marks the culmination of a four-year effort to build a comprehensive regulatory framework for the client-advisor relationship.
The IIAC has started to think about where do we go from here. Some regulators believe the rule framework does not go far enough to meet the clients’ broad needs, and that more regulation is the answer.