The Canadian Investment Regulatory Organization (CIRO) issued an update today on the project to develop rule amendments relating to the proposed adoption of an incorporated advisor compensation option.
Harmonizing advisor compensation is a key integration project addressed within CIRO’s Three-Year Strategic Plan. CIRO has assumed primary responsibility for determining the most appropriate harmonized approach and to develop and propose rules, with the Canadian Securities Administrators (CSA) continuing to monitor CIRO’s efforts as part of its standard oversight activities.
“Harmonizing allowable compensation options for investment dealer and mutual fund dealer advisors is an important way that CIRO is demonstrating its commitment to providing more efficient and consistent regulation,” says Alexandra Williams, Senior Vice-President, Strategy, Innovation, and Stakeholder Protection at CIRO. “Also, adopting an incorporated advisor compensation option would enhance investor protection by promoting greater investor access to regulated advice and ensuring that advisor corporations are subject to robust regulatory oversight by CIRO.”
The update issued today:
- details some features of the current proposal being developed,
- discusses the submission that CIRO staff have filed with the Canada Revenue Agency (CRA) for their consideration and response, and
- details CIRO’s next steps for this project.
