The Ontario Securities Commission has approved the move by the Toronto Stock Exchange Inc. to expand the definition of “Order Execution Account”, allowing for suitability relief for full-service investment dealers.

In April the Investment Dealers Association applied to the Canadian Securities Administrators to expand the relief from suitability to include those broker/dealers offering both an advisory and an order-execution only service.

The IDA introduced amendments to their rules which specified that, where a member had applied for and received approval from the IDA for relief from suitability, the member would not have to comply with general suitability requirements when accepting orders from a customer where no recommendation is provided. The TSE is changing its definition to accommodate this development.

The development comes after last April’s move by the CSA to grant relief from suitability obligations to dealers that provide trade execution only services.