1 October 2024
By Ellen BessnerI have defended many litigation and regulatory cases in which the dealers or advisors assert a common defence against allegations of unsuitable investments: “But that is what the client wanted.”
31 July 2024
By Kyra BaloghCIRO’s 2023-2024 Enforcement Report provides an overview of the enforcement trends and sanction guidelines from the last year and highlights the Enforcement team’s efforts to standardize proceedings amongst mutual fund and investment dealers.
29 July 2024
By Ellen BessnerAn advisor told me he is fighting with his compliance department, which insists that note taking is required under the client-focused reforms (CFRs). The advisor scoured the regulations and found nothing that states “note taking” is required. Therefore, he concluded he has no obligation to take notes.
17 May 2024
By Ellen BessnerI get the best ideas for my articles from the questions advisors ask during my presentations, and this article is no exception.
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 Zachary Pringle, Ellen Bessner, Brittany ShalesThe 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.