The board of the Investment Dealer’s Association has instituted a couple of by-law changes, allowing reps to be dually employed and better defining the role of the compliance officer role.

Effective immediately, the IDA’s by-laws have been changed to permit registered representatives or investment reps to be employed with more than one member of a recognized self-regulatory organization, if certain conditions are satisfied. In order to be dually employed the other member must be a related company of the member firm employing the rep, and the member and related company must provide cross guarantees.

The dual employment can not be contrary to the provisions of applicable securities legislation or any policy. The amendment allows for the emergence of dual employment as has been introduced in the banks, and their dealers. Most notably, CIBC first got regulatory approval for dual employment.

The IDA’s board has also approved a new by-law to address the lack of a defined compliance officer role in its rules. “It was determined that a distinction needed to be made between those individuals designated as accountable to the regulators and those responsible for compliance within the member firms.”

The new by-law distinguishes between the Ultimate Designated Person and the Chief Compliance Officer. The UDP is the senior management member responsible to the regulators for ensuring the effective compliance. The CCO would be responsible for ensuring that the member’s policies, procedures and management of the compliance function is effective and meet regulatory standards.