The Investment Industry Regulatory Organization of Canada has just published a white paper, suggesting that registration requirements could be changed to allow IIROC member firms to employ advisors who only sell mutual funds.
On Nov. 25, IIROC published a white paper (No. 15-0260) on the potential implications of changing some of the rules that deal with proficiency standards. Instead of requiring all advisors at IIROC firms to pass the Canadian Securities Course (CSC) and the Conduct and Practices Handbook Course (CPH) in order to become licensed for a full range of investment products (such as stocks and bonds), the regulator has drawn up “an illustrative proposal” that would allow IIROC member firms to employ advisors who only sell mutual funds and exchange-traded funds.
Under the proposed system, IIROC says that these advisors would not be required to pass the CSC or the CPH. What’s more, IIROC dealers would be allowed to offer advisors “directed commissions”, which is to say they could pay all or a portion of the commissions an advisor earns directly to a personal corporation.
Andrew Rickard –Â Insurance & Investment Journal –Â Nov. 27, 2015.
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