Annual Compliance Report 2025: Integration, Self-Regulation and Technology

Helping dealers meet regulatory requirements and advance investor protection

TORONTO, Jan. 31, 2025 /CNW/ - The Canadian Investment Regulatory Organization (CIRO) published its Annual Compliance Report, providing insight for dealers into emerging compliance challenges and what's needed to address them. CIRO's Annual Compliance Report helps dealers focus their supervision and risk-management efforts to comply with CIRO's regulatory requirements effectively.

"The Compliance Report serves to communicate emerging issues to all dealers for awareness, preparedness, and to take the best approach to adjusting policies and procedures," said Andrew Kriegler, CEO, CIRO. "By alerting dealers to potential issues faced by their industry peers, CIRO advises all members about risks and emerging compliance matters, to strengthen investor protection while responding to changes in the industry."

Staying Ahead of the Technology Curve

A key theme of the report is the relationship between technologies used in the investment ecosystem and managing their risks to protect investors. Highlights include:

• Cybersecurity remains a key business risk irrespective of the size and complexity of the dealer member. Dealers are required to report cybersecurity incidents that meet certain criteria and to implement necessary controls to protect their clients. The report warns of an increase in incident reports involving third-party service providers that have impacted their clients. The report encourages dealers to review whether they have the necessary controls in place to protect clients, client information and assets, as well as their own critical operating systems, and in training personnel to fortify their cybersecurity.
• Crypto Asset Trading Platforms (CTPs) continue to be onboarded into CIRO membership. Compliance takes a top-down, risk-based approach to recognizing the higher inherent risk associated with CTPs. As CIRO and the CSA continue to evolve and adapt to the changing crypto ecosystem, members planning to offer crypto-assets to clients should stay informed about regulatory developments.
• Algorithmic Trading is a significant tool in today's capital markets. Implementing robust controls to validate data inputs and operations is essential to ensuring the accuracy and reliability of trading decisions—and maintaining the integrity of the capital markets. The report recommends regular reviews of algorithms to ensure their ongoing effectiveness.
• Social media is increasingly used as a marketing and educational tool in the finance industry. Dealers are required to establish and maintain policies and procedures on the use of social media for business purposes by their Approved Persons. The report encourages dealers to establish clear guidelines for interacting with clients and to maintain proper books and records of communications in compliance with regulatory obligations.

Integration and Compliance

Integration is a key pillar of the first year of CIRO's inaugural Strategic Plan and annual public priorities for 2025—delivering efficiencies for the organization, members and the industry as a whole. The internal structure of CIRO's compliance teams is now integrated and the compliance programs have been harmonized to support the organizational goal of delivering regulation effectively and efficiently.

"This report will help dealers with their own compliance policies and procedures so that collectively, as an industry, we can improve investor confidence and strengthen Canadian markets," said Kriegler.

Read the full Compliance Priorities Report. 

About CIRO.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)