The board of directors of the Investment Dealers Association of Canada has approved amendments to regulations regarding managed accounts. The amendments, which revise several definitions, are effective immediately.

The revisions were recommended by the IDA’s Portfolio Management/Managed Accounts Committee, a joint subcommittee of the Compliance and Legal Section and the Education and Training committee.

The section of the regulation governing the opening and operation of managed accounts has been altered to explicitly permit the management of managed accounts by external sub-advisors, provided that they are properly registered in their home jurisdiction.

Other sections deal with proficiency, basic supervisory requirements for managed accounts, procedures to enforce the conflict of interest provisions and to ensure fairness in the allocation of investment opportunities among managed accounts.