Regulatory Alerts2023-08-03
Joint Canadian Securities Administrators and CIRO Staff Notice 31-363: Client Focused Reforms Conflicts of Interest Review
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization issued this notice to summarize findings from a review of 172 firms regarding their compliance with conflicts of interest requirements under the Client Focused Reforms. The review identified significant deficiencies, including inadequate policies, missing disclosures, and insufficient controls for material conflicts such as internal compensation structures, third-party payments, and proprietary products. Registrants are required to implement robust controls, provide clear client disclosures, and ensure that client interests are prioritized over firm interests when addressing these conflicts.
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