ARTICLE
1 October 2018

IIROC Proposes Prohibiting OES Dealers From Providing OES To Registered Dealers

SE
Stikeman Elliott LLP

Contributor

Stikeman Elliott LLP logo
Stikeman Elliott is a global leader in Canadian business law and the first call for businesses working in and with Canada. We provide clients with the highest quality counsel, strategic advice, and creative solutions. Stikeman Elliott consistently ranks as a top law firm in our primary practice areas. www.stikeman.com
On July 26, 2018, the Investment Industry Regulatory Organization of Canada (IIROC) proposed amendments to its Dealer Member Rules that would prohibit Dealer Members ...
Canada Corporate/Commercial Law

On July 26, 2018, the Investment Industry Regulatory Organization of Canada (IIROC) proposed amendments to its Dealer Member Rules that would prohibit Dealer Members that provide order execution only services (OES Dealers) from providing OES to a client that is a registered dealer. The amendments would also require OES Dealers to assign unique identifiers to registered advisers and foreign adviser equivalents that have been granted trading authority, direction or control over an OES account. Definitions for “adviser” and “foreign adviser equivalent” would also be added to the Dealer Member Rules.

According to IIROC, permitting registered dealers to conduct investment dealer-type activity through an OES without IIROC oversight is inconsistent with the requirements for other electronic access channels and provides an opportunity for regulatory arbitrage.

Under the proposed amendments, registered dealers would still be able to trade through a Participant on an intermediated basis, or could register as an investment dealer and IIROC member and trade through a routing arrangement.

IIROC is accepting comments on its proposals until October 24, 2018. For more information, see IIROC Rules Notice 18-0141.

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More