IIROC proposes best practices to improve transparency and supervision

09 Jan, 2013

The Investment Industry Regulatory Organization of Canada (IIROC) recently issued a Guidance Notice for Comment regarding the use of business titles and financial designations.


The Notice identifies supervisory best practices that would improve transparency regarding the use of business titles and financial designations and associated services offered by registrants of IIROC-regulated firms.


In 2012, IIROC conducted qualitative research involving investors and investor representatives in order to determine whether business titles and financial designations influence investors’ decision-making process and expectations. This investor research built on IIROC’s previous quantitative survey conducted amongst IIROC-regulated firms and designed to better understand the use of business titles, as well as firm supervision and compliance practices in this area.


“Protecting investors is core to IIROC’s mandate and an important element of protection is helping to ensure that investors can make informed decisions,” said Susan Wolburgh Jenah (pictured), IIROC’s President and Chief Executive Officer. “With many titles in use, identifying best practices that are embraced and implemented by IIROC-regulated firms will provide investors with better descriptions and understanding of the services offered to retail clients.”


IIROC is also preparing a glossary of common financial designations and certificates that will be made available on its website in English and French and when the proposed guidance is finalised. This glossary will complement other investor education tools and resources available online at www.iiroc.ca

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