Investors receiving advice should be protected by a consistent suitability process, stated the Investment Funds Institute of Canada (IFIC) in a submission on IIROC’s Proposed Guidance on Order Execution Only (OEO) Services and Activities.
In the Feb. 3 submission, Paul Bourque, IFIC’s President and CEO, pointed out that the Canadian Securities Administrators are proposing to increase the standard of care, strengthen suitability and enhance the KYC process. “Any proposal that would allow OEO registrants to make investment recommendations without providing suitability and KYC must be considered in the broader context of regulatory reform,” he underlined.
Investors with advice save more
“There is well-documented evidence that investors with advice save more and have more confidence about their financial future. We must ensure that investors who seek advice are protected by a robust suitability and Know-Your-Client (KYC) process, no matter which platform they choose.”
To ensure investor protection, IFIC is asking for a consistent and principled approach to suitability and KYC from regulators, as well as from self-regulatory organizations such as the IIROC.