{"id":2369,"date":"2021-08-21T19:07:00","date_gmt":"2021-08-21T19:07:00","guid":{"rendered":"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/"},"modified":"2024-03-14T16:28:11","modified_gmt":"2024-03-14T16:28:11","slug":"iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients","status":"publish","type":"post","link":"https:\/\/cfacanada.org\/fr\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/","title":{"rendered":"IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients"},"content":{"rendered":"    <div class=\"hero hero--without-image hero-banner-block alignfull\">\n        <div class=\"hero__wrapper container\">\n            <div class=\"row justify-content-between align-items-center g-0\">\n                <div class=\"d-flex col-12\">\n                    <div class=\"hero__content\">\n                        <h1 class=\"hero__title\">IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients<\/h1>\n                                                                                            <\/div>\n                <\/div>\n                            <\/div>\n        <\/div>\n    <\/div>\n\n\n\n\n\n<h2 class=\"wp-block-heading\">Download PDF:<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.cfasociety.org\/canada\/Comment%20Letters\/2021\/IIROC%20CFR%20Amendments%20DAS.pdf\">IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients<\/a> <\/p>\n\n\n\n<div style=\"height:32px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Letter Summary:<\/h2>\n\n\n\n<p>The Proposed Guidance would replace the existing KYC and suitability guidance in its entirety and is intended to conform IIROC\u2019s guidance in all material respects to the CSA\u2019s CFRs. The new guidance explains IIROC\u2019s expectations on the collection of KYC information, its interpretation of certain terms, its expectations on how dealers can in fact \u201cput the client\u2019s interest first\u201d and confirms that KYC requirements are not one-size fits all but depends on a member\u2019s business model, service offerings and clients. Similar to the MFDA\u2019s guidance, IIROC states that dealers should apply the guidance and the suitability determination requirement to all investment products offered, and not just securities. With respect to specific dealer models, the guidance notes that while the KYC obligation is generally the same for all accounts, some exceptions exist for accounts such as OEO or DEA accounts. The suitability determination obligation not only applies before taking or recommending an investment action for a retail client, but the order type, trading strategy, fee structure and method of financing must also be suitable (and put the client\u2019s interests first). In the guidance, IIROC clarifies that it will not review suitability determinations in hindsight, but rather on the basis of what a reasonable dealer or registered individual would have done in the same circumstances.<\/p>\n\n\n\n<p><br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overview of the Council&rsquo;s Comments:<\/h2>\n\n\n\n<p>The CAC recommended that several additional items be added to the proposed know-your-client and suitability processes.<br><br>We strongly support efforts to allow dealers to tailor their own policies for the CFR requirements in light of their business models and the type of services provided to their clients. We believe that the Proposed Guidance would benefit from additional specificity regarding the KYC information to be collected as it relates to the suitability determination, as it currently may have the unintended result of encouraging the gathering of client information simply as a compliance exercise.<br><br>In particular, the CAC believes that there should be additional guidance around account-type suitability and the requirement to consider a \u201creasonable range\u201d of alternatives. Additionally, as part of the KYC information that dealers must collect, the Proposed Guidance outlines details that should be obtained about a client\u2019s personal circumstances. While an individual client\u2019s date of birth and family situation are mentioned as examples, the Proposed Guidance does not specifically contain a reference to the number of dependents (other than with respect to a determination of risk capacity) and potential vulnerabilities (other than with respect to ensuring extra care is taken to explain the KYC process). We believe these items should be considered \u201cessential facts\u201d to be obtained for each client.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Download PDF: IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients Letter Summary: The Proposed Guidance would replace the existing KYC and suitability guidance in its entirety and is intended to conform IIROC\u2019s guidance in all material respects to the CSA\u2019s CFRs. The new guidance explains IIROC\u2019s expectations on the collection of KYC [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[111],"tags":[],"class_list":["post-2369","post","type-post","status-publish","format-standard","hentry","category-iiroc-fr"],"acf":[],"featured_image_src":null,"author_info":{"display_name":"Robert Decher","author_link":"https:\/\/cfacanada.org\/fr\/author\/robert\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients - CFA Societies Canada<\/title>\n<meta name=\"description\" content=\"The CAC recommended that several additional items be added to the proposed know-your-client and suitability processes.We strongly support efforts to allow dealers to tailor their own policies for the CFR requirements in light of their business models and the type of services provided to their clients. We believe that the Proposed Guidance would benefit from additional specificity regarding the KYC information to be collected as it relates to the suitability determination, as it currently may have the unintended result of encouraging the gathering of client information simply as a compliance exercise.In particular, the CAC believes that there should be additional guidance around account-type suitability and the requirement to consider a \u201creasonable range\u201d of alternatives.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients - CFA Societies Canada\" \/>\n<meta property=\"og:description\" content=\"The CAC recommended that several additional items be added to the proposed know-your-client and suitability processes.We strongly support efforts to allow dealers to tailor their own policies for the CFR requirements in light of their business models and the type of services provided to their clients. We believe that the Proposed Guidance would benefit from additional specificity regarding the KYC information to be collected as it relates to the suitability determination, as it currently may have the unintended result of encouraging the gathering of client information simply as a compliance exercise.In particular, the CAC believes that there should be additional guidance around account-type suitability and the requirement to consider a \u201creasonable range\u201d of alternatives.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/\" \/>\n<meta property=\"og:site_name\" content=\"CFA Societies Canada\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-21T19:07:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-14T16:28:11+00:00\" \/>\n<meta name=\"author\" content=\"Robert Decher\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robert Decher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/\"},\"author\":{\"name\":\"Robert Decher\",\"@id\":\"https:\/\/cfacanada.org\/#\/schema\/person\/898859db69f08edb3c347c2b17946667\"},\"headline\":\"IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients\",\"datePublished\":\"2021-08-21T19:07:00+00:00\",\"dateModified\":\"2024-03-14T16:28:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/\"},\"wordCount\":466,\"articleSection\":[\"L\u2019Organisme canadien de r\u00e9glementation du commerce des valeurs mobili\u00e8res (OCRCVM)\"],\"inLanguage\":\"fr-FR\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/\",\"url\":\"https:\/\/cfacanada.org\/iiroc-proposed-guidance-on-know-your-client-and-suitability-determination-for-retail-clients\/\",\"name\":\"IIROC Proposed Guidance on Know-your-client and Suitability Determination for Retail Clients - CFA Societies Canada\",\"isPartOf\":{\"@id\":\"https:\/\/cfacanada.org\/#website\"},\"datePublished\":\"2021-08-21T19:07:00+00:00\",\"dateModified\":\"2024-03-14T16:28:11+00:00\",\"author\":{\"@id\":\"https:\/\/cfacanada.org\/#\/schema\/person\/898859db69f08edb3c347c2b17946667\"},\"description\":\"The CAC recommended that several additional items be added to the proposed know-your-client and suitability processes.We strongly support efforts to allow dealers to tailor their own policies for the CFR requirements in light of their business models and the type of services provided to their clients. 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