In the wake of CSA releasing its Staff Notice 81-330 Status Report on Consultation on Embedded Commissions and Next Steps, IIROC has suspended section 2 of Notice 18-00075. The notice sets out IIROC's expectation of how order execution only ("OEO") firms address conflicts of interest arising from the offering of funds that pay a trailing commission described as a payment for advice and services. In a release dated August 14, 2018, IIROC noted that it anticipates publishing proposed amendments to its requirements concerning embedded commissions and therefore until the requirements have been finalized, a suspension of section 2 is appropriate. It also noted that OEO firms are still required to follow IIROC's rules concerning conflicts of interest considering the best interest of their clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.