Amid concerns that rules prohibiting personal financial dealings between registered reps and their clients may be unintentionally restrictive, the Investment Industry Regulatory Organization of Canada (IIROC) says that it will issue proposals to clarify these rules early next year.
IIROC issued a notice today indicating that dealers “have expressed concerns regarding the scope of dealings that are prohibited under the personal financial dealings rule.”
In the notice, IIROC acknowledges the issue, and says it recognizes that some dealings may be unintentionally captured by new rules (which take effect Dec. 13), or requirements regarding the management of conflicts of interest.
As a result, IIROC says that it will be proposing rule amendments that will clarify the relationship between the prohibition from engaging in personal financial dealings with clients and the requirements to identify and manage activities that may represent a conflict of interest in the best interests of affected clients.
It says it expects that these amendments will be considered by the IIROC board in early 2014.