The Canadian Investment Regulatory Organization (CIRO) has announced an initiative to explore policy measures for expanding access to online investment advice, including hybrid and automated models, with the goal of improving access to advice for more investors.
“Our policy framework was designed for traditional advisory services, and we hope the review will identify any regulatory barriers in CIRO’s current policy,” said Alexandra Williams, Senior Vice-President, Strategy, Innovation, and Stakeholder Protection. “This review will help identify whether any aspects of our current framework may be creating barriers, particularly for Canadians seeking affordable tailored online advice.”
Currently, there is no dedicated regulatory framework for CIRO-regulated members using online or hybrid advisory models. Instead, members rely on exemptive relief and special terms and conditions. Through this process, CIRO will consider whether further policy development is required and will seek input on:
- Assessing rules and guidance in the digital context;
- Identifying areas where regulatory requirements could be met through technology-augmented means; and
- Examining any unintended consequences arising from current frameworks.
Any policy developed would be part of CIRO’s “Access to Advice” strategic pillar and would build on the work being done on non-tailored advice for “Do-it-yourself” investors, supporting access to trustworthy information that helps them make more informed decisions.
