IIROC drops rule proposals for identifying non-client accounts

Reforms developed for industry were rejected in a public consultation

Citing pushback from the industry, the Investment Industry Regulatory Organization of Canada (IIROC) has scrapped planned rule changes that sought to improve the process of identifying “pro” accounts.

In a notice, IIROC said that it has abandoned proposed rule changes and new guidance that were intended to clarify the self-regulatory organization’s requirements for pro accounts, and to harmonize the dealer rules and trading rules.

The proposals, which were published in September 2019, were developed with the input of a special industry working group in an effort to address industry confusion over how to mark orders or accounts as “non-client.”

“However, public commenters expressed concern with proceeding with the proposed amendments and proposed guidance due to their potential industry impact,” IIROC said in its notice.

As a result, it decided to withdraw the proposals, it said.

IIROC said it will consider issuing new guidance on the definition of “non-client orders” and “non-client accounts.”

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