The Investment Dealers Association of Canada has proposed a rule change that will allow institutional-only branches to have managers that don’t meet retail proficiency requirements.

The existing IDA rules require that firms appoint a branch manager to be in charge of each branch office. Branch managers must meet certain proficiency requirements, which are designed for those supervising retail accounts. However, some firms maintain branch offices to deal solely with the accounts of institutional clients or that are not engaged in any sales activities.

The IDA is proposing a rule change to permit members to appoint managers of branch offices having no retail sales activities without requiring that they meet irrelevant proficiency requirements. It will enable firms to fill vacancies in such positions more quickly and reduce regulatory costs.

Comments on the change are due within 30 days.