Starting next year, investment dealers will have to provide clients with more prominent disclosure of their membership in the Investment Industry Regulatory Organization of Canada, IIROC announced Thursday.
Final rules published today step up firms’ disclosure obligations, including requirements for firms to display the IIROC logo at their offices, to provide clients with brochures from the self-regulatory organization (SRO), and links to the IIROC website and the advisor check services.
The new disclosure policy “is designed to raise public awareness” about investment firms and reps that are regulated by IIROC, and its standards, the SRO says in a statement.
“As a public interest regulator, we believe these rule changes will help investors have a better understanding of the regulatory environment and what is expected of IIROC-regulated firms and their representatives,” adds Wendy Rudd, senior vice president, member regulation and strategic initiatives at IIROC.
The new requirements take effect on Jan. 1, 2017; apart from the obligation to include the IIROC logo on client account statements, which will come into force on July 1, 2018.
“In requiring investment firms to more prominently disclose how they are regulated, we hope investors will learn more about the high standards that must be met and the protections that are in place for investors dealing with IIROC-regulated firms and their advisors,” says Lucy Becker, vice president of public affairs and member education services at IIROC.
Photo: Bloomberg