The Investment Industry Regulatory Organization of Canada is seeking feedback on a proposed guidance note detailing firms’ suitability and KYC obligations.

In the wake of its investigation into the role of investment dealers in the collapse of the market for non-bank sponsored asset-backed commercial paper, the IIROC carried out a review of product due diligence practices in the financial industry, the results of which were released earlier this year.

Additionally, the IIROC reports that its staff also undertook a review of the existing know-your-client and suitability requirements to determine whether IIROC’s expectations for compliance with these requirements needed to be consolidated and clarified.

Now, as a result of this review, IIROC staff is proposing to issue guidance on the issue and it is seeking comment on that proposed guidance, citing “the significance of the subject matter”. Based on the comments that it receives and on the results of its review, the IIROC says that it will consider “proposing complementary amendments” to its rules to further clarify the KYC and suitability requirements. Comments are due by December 16.

IE