(October 24 – 18:20 ET) – Sun Life Securities Inc. and BMO Investorline have both received suitability review exemptions from the Ontario Securities Commission.
The OSC began granting exemptions from suitability review requirements for non-solicited trades in September. The exemptions allow discount brokers that do not offer advice on trades to simply act as order execution shops subject to a number of conditions. The dealer must be a distinct legal entity and operate using its own letterhead, accounts, account documentation and brokers. As well the dealer may not compensate its brokers on the basis of transactional values.
Some of the small dealers that can’t afford to comply with the existing requirements for relief are pushing the Investment Dealers Association to gain relief for full-service trades where advice is not offered. The IDA has made a proposal on the subject to the OSC, and it is currently under consideration.
-IE Staff