Submissions to Government

PMAC Submission – CIRO Rule Consolidation Project – Phase 1

PMAC Submission – CIRO Rule Consolidation Phase 1

PMAC generally supports the objectives of the Consultation and agree that the rules pertaining to Investment Dealers (IDs) and Mutual Fund Dealers (MFDs) should be harmonized to minimize regulatory arbitrage.


  1. Eliminate the offering of discretionary account arrangements; in the interim, limit the dealer types that can offer this account type to investment dealers
  2. Continue the offering of managed accounts through portfolio managers and investment dealers only

Although we support CIRO undertaking the rule consolidation, we also believe that different registration categories, business models and client types may require

different types of regulation. In particular, managing client portfolios through discretionary authority should be subject to a fiduciary duty, to act fairly, honestly and in good faith toward the client and in the client’s best interest.

We agree with the change to clarify that discretionary accounts are only available to ID Members. We also support maintaining the status quo with respect to offering managed accounts through ID Members and PMs only.

We strongly oppose any proposal to expand the use of managed accounts to Mutual Fund Dealer (MFD) Members.