Self-regulatory body seeks input on required knowledge, skills, and behaviours for registered and investment representatives
The Investment Industry Regulatory Organization of Canada (IIROC) has announced a consultation on new competency profiles for IIROC-registered individuals to perform their roles effectively.
In a statement, the self-regulatory organization said that it is launching a multi-phase consultation to develop profiles that outline the knowledge, skills, and behaviours required for its registrants.
“By establishing clear, specific standards for IIROC registrants, we are providing value to investors and the financial system in the way we regulate, and in the way we protect and promote the health of Canada's capital markets,” said Elsa Renzella, senior vice president of Enforcement and Registration at IIROC.
The first phase, now open for public comment, focuses on registered representatives (RR) and investment representatives (IR), the two largest approval categories. The draft competency profiles for those categories will include guidelines for both retail and institutional settings.
In line with IIROC’s three-year strategic plan, consultations on the remaining nine approval categories will be conducted in two separate phases over the next two years.
As part of this development process, IIROC is also working with independent consultant Metrix Group, which specializes in learning solutions including competency profile development. The self-regulatory organization has reviewed approaches by watchdogs in other jurisdictions, such as FINRA in the U.S. and the U.K.’s Financial Conduct Authority. IIROC said it has also consulted with various advisory committees, including its Proficiency Advisory Committee and a working group of the institutional sub-committee of the Conduct, Compliance, and Legal Advisory Section.
Noting the importance of publishing competency standards as guidance in developing content for licensing courses, IIROC said it is holding off on undertaking a competitive process to select a single course provider until the competency profiles are completed. In the meantime, it is renewing its contract with the Canadian Securities Institute (CSI), the current provider for courses required in IIROC licensing, until December 2025.
To address ongoing public health concerns linked to COVID-19, “IIROC and CSI also continue to work together to offer more flexibility in course offerings by expanding CSI's computer-based testing and adding remote proctoring as an alternative to in-person examinations,” IIROC said.