Securities regulators have issued guidance setting out their expectations for tougher client identification requirements.
In a notice published Aug. 6, the Investment Industry Regulatory Organization of Canada (IIROC) provides added guidance to firms on complying with new requirements that will come into effect on Sept. 6, which will expand the obligation to identify certain clients for dealers that provide order execution services (OES).
Among other things, the rule changes aim to strengthen IIROC’s market surveillance capabilities by ensuring that firms identify advisers with trading authority over OES accounts, and include those identifiers with these clients’ orders.
The measures are intended to bolster IIROC’s ability to detect unusual or abusive trading activity, and to improve oversight of the risks posed by electronic trading.
The notice published today details the regulator’s responses to frequently asked questions about complying with the new requirements.