Regulator proposes new guidance to broaden availability of regulated information
Canada’s investment industry regulator is moving forward with a plan to give greater protection to self-directed investors through reliable and regulated information.
The Canadian Investment Regulatory Organization (CIRO) opened a consultation late last year inviting stakeholder feedback on allowing Order Execution Only (OEO) dealer to provide broader information and education for their clients to expand the availability and reach of regulated sources.
Today (August 12), CIRO has proposed new guidance that it hopes will mean more reliable information at a time when DIY investors are increasingly turning to unregulated sources including online forums, social media, and finfluencers when making important investment decisions.
With its own recent research showing interest among DIY investors in accessing tools providing information, alerts, and education through their investment platform of choice, the regulator wants to empower OEO dealers to meet this demand for regulated content to stem the spread of misinformation.
READ: What CIRO's survey of DIY investors tells us about investor motivations
Meanwhile, CIRO has seen concern from within the industry that the limitations on what can be provided by OEO dealers means DIY investors are missing out on important information and warnings.
“Relying on unverified sources of information could put investors at significant risk of financial harm,” says Alexandra Williams, senior vice-president, Strategy, Innovation, and Stakeholder Protection at CIRO. “Giving investors greater access to high-quality, trustworthy and timely information from OEO dealers will not only help them make informed, confident investment decisions, but could also reduce their reliance on unregulated sources that may be providing incomplete, biased or misleading advice.”
Updating guidance for OEO dealers is a CIRO priority for 2026 and the proposed update would allow more information to be provided without violating the rule that prohibits them from making recommendations – or providing communications that could “reasonably be expected to influence” investors.
The proposal would allow OEO dealers to provide content that would give information and support DIY investors’ investment decision making, such as:
- alerts and notifications
- self-assessment tools
- sample portfolios
- informative and educational material
Targeted, proactive communications to clients would be allowed as long as they are purely educational and do not endorse any specific investment decisions.
Adequate safeguards would be required such as:
- providing clients with clear information regarding the proper use and limitations of any decision-making supports offered
- addressing or avoiding material conflicts of interest
- ensuring that all decision-making supports are regularly monitored and updated.
“The new approach outlined in the proposed guidance gives dealers the flexibility to innovate and better service clients’ needs in the OEO channel while ensuring the necessary safeguards are in place to maintain investor protection,” says Williams.
Comments on the proposed guidance can be submitted to CIRO until November 10, 2025.
