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Summary:
This month saw significant new proposals from the Canadian Investment Regulatory Organization (CIRO) that would complete and implement their multi-year policy project on proficiency in the securities industry. Instead of assessing proficiency through mandatory courses (currently administered by the Canadian Securities Institute), under the proposals CIRO would accomplish this task through exams developed in-house with assistance from a to-be-announced vendor. Candidates would then be free to choose how and on whom to rely in preparing for these exams. The proposals also introduce an increased structural reliance on certain training and proficiency elements to be delivered and maintained within CIRO member firms. CIRO also proposes to introduce a baseline education/experience requirement for all candidates, which can be met with either a post-secondary diploma or degree, or four years of relevant experience. Under the proposals, it would not be necessary for candidates to be sponsored by a firm before writing an exam, a significant divergence from a proficiency model that is otherwise notably similar in spirit and major features to that administered by the Financial Industry Regulatory Authority (FINRA) in the United States.
We of course welcome efforts to elevate the proficiency standards that apply to the investment profession, especially when they seem unlikely to introduce undue barriers to access to the profession. Whether removing the firm sponsorship requirement is the right move, however, is something we’ll need to think through. The CAC will have this and other aspects of the proposals in mind as we prepare our comments.
In conducting this work, I’m delighted that we are now joined by four new members with deep legal, regulatory, and financial sector experience: Shahenda El Gindi, CFA, Christopher Keeley, CFA, Kathryn Laflamme, CFA, Hari Marcovici, CFA, and Andrew Pennington, CFA, CIPM. They’ve hit the ground running, already making important contributions. Stay tuned for even more additions to the team later in the year.