The Investment Industry Regulatory Organization of Canada (IIROC) is giving the industry an extra month to consider the implications of proposed new guidance that would allow firms providing retail investors with order execution to also supply a limited form of advice.<\/p>\n
IIROC published proposed guidance in early November for firms that provide order execution only (OEO) services that aims to adapt the regulatory framework to evolving industry reality and to clarify the requirements for these firms.<\/p>\n
The deadline for comments on the proposals was initially set to expire on Dec. 19. IIROC announced on Friday that it’s extending the comment period to Jan. 20, 2017. The added time comes in response to requests from the industry seeking additional time to consider and comment on the guidance, IIROC notes.<\/p>\n
IIROC indicates in its original notice that the proposed guidance would represent a change in regulatory policy by allowing OEO firms to provide clients with tools, such as model portfolios, that amount to a form of advice. The proposed guidance sets out that supplying model portfolios constitutes a recommendation, but it also proposes granting standardized exemptive relief to allow firms to “make available certain limited model portfolios.” <\/p>\n