Brokerage firms will have another six months to comply with new enhanced suitability requirements that are being introduced as part of the Client Relationship Model (CRM).

The Investment Industry Regulatory Organization of Canada (IIROC) said Thursday that it has decided to extend the implementation deadline for the enhanced suitability assessment requirements from Sept. 26 of this year to March 26, 2013. IIROC is giving dealers the extension primarily to accommodate the systems changes that firms say they’ll have to make.

IIROC says that since the CRM rules were finalized and approved back in March, dealers have pointed out systems and operational challenges in meeting the planned implementation date in the fall. For example, the new rules require a suitability analysis whenever certain trigger events occur, and dealers are trying to develop and automate processes to perform and document these new suitability assessments.

Some dealers also have to modify their systems to handle new ‘know your client’ requirements, which also requires them to test the impact of these CRM-related changes on their existing systems. And, firms also have to update existing policies and procedures, and establish adequate training programs to ensure supervisory and compliance personnel are aware of the suitability obligations, and the systems that are to help meet the new regulatory requirements.