rules and regulations

With the implementation of its new plain language rulebook delayed by Covid-19, the Investment Industry Regulatory Organization of Canada (IIROC) is proposing to adopt certain provisions sooner rather than later.

IIROC originally planned to adopt its revised ruleset last month but the deadline was pushed back to the end of 2021 by the effects of the pandemic.

Now it’s seeking to make several rule changes that reflect provisions in the plain language rules.

The self-regulatory organization published proposed amendments that, it said, aim to improve its dealer rules without negatively impacting investor protection or increasing the regulatory burden on dealers.

The proposals, which are out for comment until Sept. 8 2020, address issues such as verifying client identity.

For instance, it’s proposing to raise the threshold for confirming the identity of beneficial owners of corporate clients from 10% to 25%, which would align with anti-money laundering (AML) requirements.

IIROC is also proposing changes that would give dealers and reps more flexibility to meet certain proficiency requirements.