Regulatory Alerts2025-12-10
Joint CSA and CIRO Staff Notice 31-368: Review of Registrants’ KYC, KYP and Suitability Practices
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization issued Staff Notice 31-368 to summarize findings from compliance reviews of 105 registered firms regarding their adherence to Client Focused Reforms. The notice identifies significant deficiencies in how registrants determine client risk profiles, collect detailed financial circumstances, and maintain up-to-date Know Your Client information. It provides specific guidance requiring firms to separately assess risk tolerance and capacity, gather granular financial data, and implement robust policies to ensure holistic suitability determinations.
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