Regulatory Alerts2014-01-09
CSA Staff Notice 31-336: Guidance for Portfolio Managers, Exempt Market Dealers and Other Registrants on Know-Your-Client, Know-Your-Product and Suitability Obligations
The Canadian Securities Administrators issued this notice to provide guidance on the fundamental know-your-client, know-your-product, and suitability obligations for portfolio managers, exempt market dealers, and other registrants. The document establishes that these duties require meaningful dialogue and adequate documentation rather than mechanical compliance, emphasizing that failure to properly assess client circumstances can lead to serious regulatory breaches and legal liability. It further details specific expectations for updating client information, verifying accredited investor status, and maintaining current records to ensure investments align with client needs and objectives.
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