(March 17 – 10:15 ET) – The Investment Dealers Association is proposing to reduce the mandatory minimum on-the-job training period to 30 days from 90 in an effort to allow swamped brokerages to deal with the recent jump in trading.
The issue is of particular concern to the online brokerages where heavy volume has caused severe service problems. Firms have blamed their lack of capacity on the mandatory 90-day training period for investment representatives looking to work at IDA firms.
The IDA’s board has approved the rule change and is requesting the securities commissions to give it quick approval too.
Reps will still be required to pass the Canadian Securities Course, the
Conduct and Practices Handbook Course and the shortened apprentice period before they can process orders, although they are not permitted to offer advice. The IDA says that a working group of its Retail Sales Committee recommended the change after reviewing IR proficiency requirements.
Regulators are apparently considering the IDA’s proposal on a co-ordinated basis. Frank Switzer, director of corporate relations at the Ontario Securities Commission, says the OSC is working with the commissions in B.C. and Alberta to “expedite a decision … the matter should be resolved in a couple of weeks.”
Although Quebec doesn’t approve IDA by-laws it has launched its own initiative to speed up the staffing backlog at the brokerages, allowing brokers to hire people before the training is completed, under supervision and provided they only process sells, not buys.
-IE Staff