Modernization of requirements for account transfers and bulk account movements (IDPC Rule 4800, MFD Rule 2.12 and CIRO Rule 4800)

A client service disruption can occur when a client decides to transfer their account from one firm to another and there are significant delays in moving some or all of the client’s account positions to the new firm. Reasons for these delays largely stem from:

1. outdated and inefficient account transfer processes collectively across:
   1. the intermediary firms that are involved in facilitating the account transfer (i.e., regulated dealers), and
   2. the product manufacturer firms that are responsible for the reregistration of positions in certain types of investment products (i.e., guaranteed investment certificates and segregated funds)
      and
2. account transfer regulatory requirements that are outdated, inconsistent and are currently only being applied to a subset of intermediary firms (i.e. mutual fund dealers and investment dealers only) and not at all to product manufacturer firms.

To reduce the likelihood of delays in transferring a client account from one firm to another, both:

• the introduction of technology solutions to replace manual processes, and
• the updating and expansion of regulatory requirements

are necessary.

The Canadian Investment Regulatory Organization (CIRO) is republishing for further comment revised proposed rule amendments that are designed to modernize its rule requirements relating to account transfers. CIRO published for public comment its initial account transfer proposals on July 10, 2025 within Bulletin 25-0199.