(October 18 – 17:00 ET) – Discount brokerage BMO InvestorLine is removing the suitability review from client orders, after successfully meeting the requirements of Canadian Securities Administrators. Other firms that have dropped the review include E*Trade Canada, National Bank Discount Brokerage Inc. and day-trading firm Quest Capital Group Ltd.
The brokerage firm says the elimination of the suitability review is in response to the growing number of self-directed trades being executed by Canadian investors. In an online survey conducted by BMO InvestorLine, 95% of respondents indicated that they were comfortable taking all the risk and responsibility for their investment transactions.
“This change recognizes the fact that today’s Canadian investors are more savvy and use the services of a direct investing firm to exercise their own judgment and independence,” said Tom Flanagan, chief operating officer, BMO InvestorLine. “We believe our clients will now be able to experience the true benefits of independent investing — faster execution and investment decisions based on their own research and knowledge.”
Over the coming weeks, BMO InvestorLine clients will be asked to formally accept the changes to the suitability review online, or by contacting a BMO InvestorLine representative. Once accepted, the suitability review will be eliminated and clients will enjoy quicker processing of orders.
-IE Staff