In new guidance, the Canadian Investment Regulatory Organization (CIRO) sets out the sort of educational backgrounds and work experience that dealers can consider when registering reps under its new proficiency model.
The self-regulatory organization published guidance for firms ahead of the new approach to industry proficiency that takes effect Jan. 1, 2026. The new framework sets minimum education or experience requirements for various registration categories, including registered reps.
Starting in 2026, new registered reps must either have a relevant post-secondary diploma or degree, or at least four years of relevant experience.
The requirements are intended to bolster investor protection by raising qualification standards. At the same time, the approach is principles-based, giving firms latitude to determine how to meet the new standards.
“We also considered the importance of access to advice for the investing public and not setting the bar so high that dealers will not be able to hire individuals as needed to support their business,” the SRO said in a guidance note.
Against that backdrop, the SRO’s guidance to firms sets out “key factors for dealers to consider as they assess the relevancy of an individual’s education or experience before submitting an application for approval to ensure compliance with the proficiency principle…”
These factors include the category of registration, client and product types, the dealer’s business model and the rep’s likely responsibilities.
For reps, “the core objective of mandating a certain level of education or experience is to ensure they have the maturity to serve the investing public, and ability to apply the necessary analytical and communication skills to carry out their regulatory responsibilities,” the guidance said.
In terms of relevant education, the SRO isn’t mandating that reps hold a finance or accounting degree. Instead, it said a wide range of degrees may be considered relevant — including arts, science, engineering, architecture, health and commerce-related programs.
“We are not prescribing a list of education and experience as we recognize the value of diverse education backgrounds,” the guidance said. “We recognize that [reps] have varied backgrounds, including from other careers, and may have been educated in another country so our goal is to ensure that we raise the bar without creating unnecessary barriers to entry.”
The guidance also stresses that its list of potentially relevant degrees is not exhaustive or prescriptive.
“A diploma or degree from an accredited post-secondary institution, whether domestic or international, may be relevant. As part of their hiring due diligence, dealers need to assess which educational backgrounds align most closely with their specific business needs and the [rep’s] role,” it said.
When it comes to work experience, the guidance suggests that relevant experience is more narrowly focused. It may include working in the financial industry — at a dealer, fund manager, bank or insurance company — along with industries such as government and administration.
As with the education requirement, “dealers need to assess which experience backgrounds align most closely with their specific business needs,” it said.
The guidance also covers other categories affected by the new proficiency model — including portfolio managers, chief compliance officers, executives and supervisors. In a separate notice, the SRO also provides guidance to firms on making proficiency exemption requests.
In July, it outlined the cost of licensing exams under its new framework, which it set at $475 per exam “based on a cost-recovery model.”