IIROC issues draft guidance for comment on compensation structures for retail investment accounts

TORONTO, Aug. 14, 2012 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published for comment a draft Guidance Note regarding compensation structures for retail investment accounts.

IIROC is requesting comments from regulated firms and other interested parties on this draft guidance, which seeks to enhance investor protection and clarify what Dealer Members should consider in meeting their suitability and other obligations to their clients.

The Guidance Note includes a summary of recent developments globally in advisor compensation and a discussion of the considerations in offering commission versus fee-based accounts. As well, it includes a review of related suitability and supervision requirements for member firms and their registrants. The guidance is complementary to IIROC's Client Relationship Model rules, which are currently being implemented in phases.

The comment period is open for 90 days. Please see the Request for Comments and Draft Guidance Note for more information on IIROC's website for more details.

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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.  Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News

Lucy Becker
Vice President, Public Affairs
416.943-5870
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David Thomas
Director, Public Affairs
416.943-6921
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