Rule Consolidation Project – Phase 4

The Canadian Investment Regulatory Organization (CIRO) is publishing for comment Phase 4 of its Rule Consolidation Project rule proposals.1 The Rule Consolidation Project will bring together the two member regulation rule sets currently applicable to investment dealers2 and to mutual fund dealers3 into one set of member regulation rules applicable to both categories of CIRO Dealer Members.4

The objective of Phase 4 of the Rule Consolidation Project (Phase 4 Proposed DC Rules) is to adopt requirements that are mostly unique to the IDPC and MFD Rules and have been assessed as having differences deemed to be significant with potential material impacts on stakeholders.5

• 1Rules Bulletin 23-0089 published on June 30, 2023, announced the Rule Consolidation Project objectives, principles and roadmap. Rules Bulletin 23-0147, Rules Bulletin 24-0007 and Rules Bulletin 24-0145 proposed new rules as part of Phase 1, Phase 2 and Phase 3 of the Rule Consolidation Project, respectively.
• 2CIRO Dealer Members that are registered as an investment dealer or are registered as both an investment dealer and a mutual fund dealer are required to comply with the CIRO Investment and Partially Consolidated (IDPC) Rules.
• 3CIRO Dealer Members that are registered as a mutual fund dealer and not registered as both an investment dealer and a mutual fund dealer are required to comply with the CIRO Mutual Fund Dealer (MFD) Rules.
• 4Where a CIRO Dealer Member is a participant in one or more of the markets overseen by CIRO they also must comply with the CIRO Universal Market Integrity Rules (UMIR). UMIR will not be consolidated with other CIRO Rules as part of this project and will continue as a separate CIRO Rule set.
• 5Important stakeholders that were considered include investors, the public, investment dealers and their Approved Persons and employees, mutual fund dealers and their Approved Persons and employees and CIRO itself.