The Guidance Note released on June 2 sets out the Investment Industry Regulatory Organization of Canada (IIROC) expectations relating to the disclosure and approval of outside business activities (OBA).
Dealers are required to implement adequate approval processes taking into account:
The duty of care to existing clients
The provision of fully informed and unbiased advice to clients
The appropriate use of client information
The distinction between the Dealer’s business and the outside activity
Robust and impartial approval process
Dealers are required to implement appropriate procedures and policies to comply with the supervision requirements (disclosure, identification of conflict of interest, training, record keeping…).
Dealers members must comply with their reporting requirements through the National Registration Database (NRD) in a timely fashion. This includes filing the appropriate forms including Form 33-109F4 – Registration of Individuals and Review of Permitted Individuals.