Regulatory Alerts2023-12-06
Client Focused Reforms Frequently Asked Questions
The Canadian Securities Administrators, IIROC, and MFDA issued this guidance to clarify operational requirements for the Client Focused Reforms, which enhanced registrant conduct obligations regarding conflicts of interest, know your client, and know your product. The document addresses specific implementation questions, including expectations for staff training on material conflicts, the sufficiency of client information for risk profiling, and procedures for keeping client data current. It emphasizes that registrants must exercise professional judgment to ensure suitability determinations while maintaining flexibility in how they operationalize these principles within their specific business models.
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