IIROC seeks to speed bulk transfers

IIROC seeks to speed bulk transfers

In an effort to facilitate bulk account transfers, the Investment Industry Regulatory Organization of Canada (IIROC) is proposing rule changes to accelerate the process.

Among other things, the changes would establish the authority of IIROC staff to grant relief from certain account opening requirements (known as re-papering requirements) in order to facilitate bulk transfers.

Staff would be able to grant relief in various situations, such as when dealers merge, one firm purchases a block of accounts from another or changes occur in clearing arrangements.

“Dealers may request relief from these requirements so that they can open new accounts for clients impacted by the account movement and complete all required account documentation within an extended timeline,” IIROC said in its notice.

The self-regulatory organization said the proposals are expected to positively impact dealers, investors and others by allowing for more efficient regulatory relief and limiting delays.

The changes would also set out a consistent framework for enabling bulk transfers, and provide dealers and investors with greater clarity on the process.

The proposals are out for comment until Dec. 7.

Source: Investment Executive

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