Proposed new guidance on order execution only account services and activities

The Canadian Investment Regulatory Organization (CIRO) is proposing to replace CIRO Guidance Note 3400-21-003 Guidance on order execution only account services and activities (referred to as the current OEO Guidance) with the proposed guidance attached here as Appendix 1 (referred to as the Proposed Guidance).

The Proposed Guidance proposes material changes to the existing regime following significant and continuous growth in the number of do-it-yourself (DIY) investors in the industry. Both the investing public and order execution only Dealer Members (OEO Dealers) have called for updates to the current OEO Guidance to better serve and support clients in these channels.

The Proposed Guidance clarifies the prohibition on recommendations in order execution only (OEO) accounts under the Investment Dealer Partially Consolidated Rules (the IDPC Rules), and consequently broadens the scope of decision-making supports that OEO Dealers can offer clients. The Proposed Guidance takes a principle-based approach by outlining key safeguards that OEO Dealers should consider if they offer decision-making supports to clients.