CIRO – Policy Options for Leveling the Advisor Compensation Playing Field

CIRO – Policy Options for Leveling the Advisor Compensation Playing Field

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CIRO – Policy Options for Leveling the Advisor Compensation Playing Field

Letter Summary:

CIRO is requested feedback on its position paper regarding policy options for leveling the advisor compensation playing field.

Currently, Approved Persons governed by the Mutual Fund Dealer (MFD) Rules of the Canadian Investment Regulatory Organization (CIRO) are permitted to utilize an approach where the compensation they have earned through a sponsoring Dealer Member is paid to a party other than themselves. Approved Persons governed by the CIRO Investment Dealer and Partially Consolidated (IDPC) Rules, are not permitted to use such an approach.

The position paper which analyses three policy options for leveling the Approved Person compensation playing field, sets out CIRO’s preliminary position on the option to pursue and requests public comment on which option they should pursue.

Overview of the Council’s Comments: