The Investment Industry Regulatory Organization of Canada is proposing to require firms to disclose their membership in the self-regulatory organization.
IIROC is proposing a new policy and rule amendments setting out a dealer’s requirement to disclose their membership in IIROC.
“The primary objectives of the proposals are to promote and raise public awareness of the advantages of working with an IIROC-regulated firm and advisor, and to help investors assess the regulatory status of member firms and/or individual registrants,” it says.
The current rules allow for the optional use of the IIROC name and logo. Under the proposed rules, the IIROC rule book will no longer contain rules setting out those disclosure requirements, instead, firms will be required to comply with the new disclosure policy, which will be posted on IIROC’s website and updated from time to time.
The policy will set out the obligation to disclose membership in IIROC, as well as other relevant information, including logo specifications, and proper use of the IIROC acronym. It will require dealers to display the IIROC decal at each business location; display the IIROC logo on their website; include the logo on the front of each trade confirmation and account statement sent to a client; and, to distribute a new IIROC Official Brochure, which is similar to the CIPF brochure, to clients. Conversely, dealers will also be prohibited from using the IIROC name and logo in certain circumstances.
The proposals will be subject to six month transition periods, except with respect to account statements and confirmations in which case dealers will be given 18 months to make any system changes. They are now out for a 60-day comment period.