9 April 2024
By Ellen BessnerAdvisors are at risk these days with firms’ propensity for terminating them at the first whiff of an infraction. Note taking to support suitability of a client’s account became the law since Dec. 31, 2021, with the client-focused reforms (CFRs). So, here is a primer on how you can ensure that your notes pass the sniff test.
26 March 2024
By Zachary PringleFor the first time, financial advisors have contested the rising penalties in cases of pre-signed and altered forms, which could help other advisors who face sanctions for forms violations.
31 January 2024
By Zachary PringleIn 2020, the Securities Exchange Commission (SEC) issued its first penalty related solely to advisors text messaging with clients. Since then, the SEC has commenced over 35 enforcement actions against firms in respect of record-keeping violations related to instant messaging between advisors and clients, and has imposed fines of more than $2.5 billion in respect of these breaches. Canadian regulators aren’t usually too far behind its American counterparts, so it’s anticipated that this infraction will be an area of investigation and enforcement for CIRO in 2024 and 2025.
10 January 2024
By Brittany ShalesStarting a financial advisory practice is an exciting venture that comes with both challenges and opportunities. As you build your business, there are a number of considerations that can make a difference in the success and sustainability of your practice. In this blog, we’ll discuss some of the key considerations.
19 December 2023
By Brittany Shales, Zachary Pringle, Ellen BessnerThe Canadian Securities Administrators (CSA) has proposed to reshape the existing Ombudsman for Banking Services and Investments (“OBSI”) regulatory framework by making its decisions final and binding, without a right of appeal. This blog will highlight some of these changes and the impacts they could have on investors and dealers.
29 November 2023
By Zachary PringleIn 2021, I predicted that CIRO would begin auditing Canadian dealers to ensure proper supervision and controls over remote work. At the time, I hoped that due to the sudden and immediate shift to pandemic-induced industry-wide work-from-home mandates, regulators would cut dealers some slack, provide breathing room to adjust to the “new reality,” and that after a reasonable adjustment period, CIRO might begin to crack down on home office inspections by enforcing tighter controls over remote work supervisory and auditing requirements. So far, we haven’t seen any bulletins or notices from CIRO reporting results of such audits or related enforcement proceedings.
20 November 2023
By Ellen BessnerThe annual enforcement report of the Canadian Investment Regulatory Organization (CIRO) showed a huge jump in complaints at mutual fund dealers (2,541 in 2023, up from 1,635 in 2022), with only 96 investigations completed compared to 133 the previous year. There was also a drop in proceedings commenced (68 in 2023, down from 87 in 2022). (For investment dealers too, complaints were up and proceedings commenced were down, though more investigations were completed — 91 in 2023 versus 76 in 2022.)
1 November 2023
By Brittany Shales, Ellen BessnerA closer look at CIRO’s enforcement trends identifies issues affecting registrants that remain unanswered – further, we hope that this report will be rethought to introduce more meaningful stats for better understanding and transparency.
25 October 2023
By Brittany ShalesThis is the first column in a two-part series on what advisors can to do to make their practice more inclusive. This column discusses the importance of advisors showing that they are an ally to LGBTQI+ clients and provides tips on how to put allyship into practice. The second column will be about key questions to ask LGBTQI+ clients to better understand the unique financial circumstances and planning required to set them up for success.
11 October 2023
By Zachary PringleWhy wouldn’t your clients want to appoint you, their trusted advisor, as their power of attorney and executor/estate trustee? Advisors develop comprehensive knowledge of their elderly clients’ personal and financial circumstances, and foster a deep sense of trust with their clients. It is reasonable for your clients to view this appointment as a natural progression in their relationship with you, and certainly a testament to your strong relationship building. So while you may want to accept the appointment, regulations and your dealer’s policy manual specifically prohibit it!