pc
nid 91287
Mar 12, 2026
ataylor@vixio.com
Canada
News - Canadian Investment Regulatory Organization
financial services
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1808 charsCanadian Investment Regulatory Organization Publishes Expanded Guidance for Order Execution Only Dealers
On March 12, 2026, the Canadian Investment Regulatory Organization (CIRO) published new guidance expanding the range of decision-making supports that Order Execution Only (OEO) dealers can offer to clients without violating prohibitions on providing investment recommendations.
The updated guidance addresses concerns identified during public consultations that previous restrictions prevented OEO firms from providing important information to do-it-yourself (DIY) investors, who increasingly rely on unregulated sources such as online forums, social media, and finfluencers for investment guidance. The new guidance adopts a principle-based approach, clarifying that OEO dealers may provide informative resources and decision-making supports provided they do not endorse specific investment decisions and maintain adequate safeguards.
Permitted decision-making supports now include alerts and notifications, self-help tools, and educational information. Key safeguards OEO dealers should consider include providing clear disclosures and disclaimers, using transparent and objective criteria, addressing material conflicts of interest, and performing regular monitoring and updates. The previous guidance restricted OEO dealers from providing communications that could "reasonably be expected to influence" investors; the new guidance clarifies this restriction applies only when such communications endorse specific investment decisions.
Alexandra Williams, Senior Vice-President of Strategy, Innovation, and Stakeholder Protection at CIRO, stated the guidance enables dealer members to provide more tailored decision-making supports while enhancing investor protection through access to high-quality tools from regulated sources. The guidance is effective immediately and is available on CIRO's website.
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2217 charsCanadian Investment Regulatory Organization Publishes Expanded Guidance for Order Execution Only Dealers
The Canadian Investment Regulatory Organization (CIRO) has released updated guidance that modernizes the regulatory framework for Order Execution Only (OEO) dealers by broadening the range of decision-making supports they can offer to do-it-yourself (DIY) investors. An OEO account is a self-directed platform where the dealer is prohibited from providing investment advice or suitability determinations.
Under the updated framework, CIRO has replaced the former "influence" test (which restricted any communication that could reasonably be expected to influence a trade) with a more precise standard. A bank or dealer may provide informative and proactive resources provided they do not endorse a specific investment decision for the client.
According to the CIRO Rules Bulletin , the previous influence test was criticized for being overly broad and having a "chilling effect" on OEO dealers. By contrast, the new standard focuses on whether the dealer is actively endorsing a specific course of action, such as buying a selling a particular security. This shift allows dealers to provide portfolio analytics, risk-based notifications, and proactive educational alerts (such as pop-up warnings for high-risk trading behaviors) as long as the language remains objective and does not advocate for a specific outcome. To ensure these expanded options do not inadvertently cross the threshold into prohibited personalized recommendations, the guidance mandates the following requirements:
Asset Allocation Sample Portfolios: OEO platforms may offer sample portfolios that demonstrate generic asset allocations; however, they remain prohibited from including specific securities or derivatives within these models to avoid endorsing specific products.
Dynamic Disclosure and Transparency: Rather than relying on static account-opening disclaimers, firms must provide continuous, real-time disclosures clarifying that the user is solely responsible for all investment decisions.
Rigorous Conflict Management: Dealers must implement robust policies to manage or avoid material conflicts of interest, particularly regarding the promotion of proprietary or affiliate products within filtering and self-assessment tools.