Compliance Insights: Master CIRO Exam Preparation with InvestorCOM

On March 12, 2024, the Canadian Investment Regulatory Organization (CIRO) published their exam priorities for the year and what the areas of focus will be during upcoming exams for all dealers. This year’s exams of both mutual fund and investment dealers will include a focus on the second phase of the client focused reforms (CFRs). 

In coordination with the Canadian Securities Administrators, CIRO’s exams will focus on assessing registrants’ compliance with other CFR obligations including: Know Your Client, Know Your Product and the enhanced suitability determination requirements that came into force on December 31, 2021. 

InvestorCOM is here with the cliff notes and the solution to transform this daunting challenge into a strategic advantage as you begin CIRO exam preparation at your firm. Our solutions align with these focus areas and can turn compliance into your firm’s strongest asset. The particular focus areas include: 

  1. Ensuring registrants identify a reasonable range of alternatives when making recommendations and document their justification for selecting a particular option. Registrants must consider the following:  
    • The scope of products considered as alternatives. 
    • The timing of the identification of the reasonable range of alternatives. 
    • What level of documentation is required for each recommendation regarding the alternatives selected and the reason for choosing the recommended security.
    • The solution: Automatically generate a product peer group of reasonably available alternatives comparing cost, risk and return with InvestorCOM’s PeerCompare. Deliver compliant investment recommendations to investors, while tracking all activity and relevant notes.
  2. Assessing a client’s risk capacity, along with client risk tolerance, in determining a client’s risk profile.  
  3. Conducting product due diligence on all products on the dealer’s product shelf, and ensuring registrants are adequately trained to meet their Know Your Product obligations, including: 
    • The firm’s process for reviewing and approving all products. 
    • The KYP processes and procedures to monitor previously approved products for significant changes, and to notify registrants who have client accounts holding such products. 
    • The solution: Stay on top of significant and material changes on your shelf with custom monitoring and alerts that give you the information you need, when you need it, with InvestorCOM’s ShelfMonitor. This application scans investment products for changes such as sales and fees, management information, product suitability and risk. 

InvestorCOM stands as a pivotal ally for wealth management firms navigating the intricate landscape of compliance, especially amidst the evolving demands outlined by CIRO and CSA. Our suite of solutions, including PeerCompare and ShelfMonitor, empowers firms to not only meet but exceed the stringent requirements of the client-focused reforms. By facilitating in-depth product due diligence, enhancing Know Your Client and Know Your Product processes, and ensuring the meticulous documentation of all recommendations and product changes, InvestorCOM ensures your firm remains at the forefront of regulatory compliance and industry best practices.

In a regulatory environment where the cost of non-compliance is higher than ever, can you afford not to leverage the streamlined efficiency and peace of mind that InvestorCOM provides? Join the ranks of wealth management firms who are setting new standards in client satisfaction and regulatory adherence. If you’re interested in preparing your firm for the upcoming CIRO exams, we’d love to talk with you. Book a demo today to see our compliance solution in action.