The financial services industry in Canada is undergoing a transformation driven by enhanced regulatory requirements aimed at strengthening investor protection. New regulations, including the upcoming Client Relationship Model – Phase 3 (CRM3) and Total Cost Reporting, emphasize greater transparency, rigorous Know Your Client (KYC) and Know Your Product (KYP) processes, and enhanced risk profiling part of the recent Client-Focused Reforms. These reforms are aligned with global regulatory trends, such as MiFID II in Europe and the Financial Conduct Authority (FCA) Consumer Duty framework in the UK. This research will focus on the way this Client-Focused Reforms are being implemented.
The drive for enhanced suitability standards
Regulatory bodies, including the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO), have introduced measures to ensure financial advisors act in the best interests of their clients. The new suitability framework requires:
- Greater transparency regarding investment costs and conflicts of interest.
- Robust risk assessment methodologies to align investments with clients’ financial goals and risk tolerance.
- The seamless integration of compliance into financial advisory workflows.
Balancing compliance with operational efficiency
Adapting to these regulatory developments requires financial institutions to reassess existing processes while maintaining operational efficiency. Key challenges include:
- Implementing advanced data analytics for suitability assessments.
- Integrating compliance measures without disrupting advisor workflows.
- Ensuring adherence to regulatory standards while managing compliance costs.
Comprehensive research on suitability practices in Canada
An in-depth independent research initiative, conducted by Ortec Finance in collaboration with Canada’s Financial Wellness Lab (FWL), is analyzing how leading financial institutions are implementing suitability practices. This research aims to provide actionable insights that will support financial firms in refining their compliance strategies, improving client satisfaction, and enhancing operational efficiencies. As regulatory expectations evolve, adopting a proactive approach to suitability will be essential.
This study explores how firms integrate KYC and KYP into a holistic, data-driven framework.
The research will examine approximately 20 financial firms in Canada, with a focus on:
- Data collection and updating processes for KYC/KYP compliance.
- Risk profile assignment and continuous monitoring.
- The evolving roles of financial planners and investment advisors in suitability assessments.
Opportunities for participation
Executives in compliance and wealth management are invited to participate in a one-hour interview. Key benefits of participation include:
- Comprehensive whitepaper - Exclusive access to a detailed report summarizing industry best practices, benchmarks, and anonymized insights.
- Exclusive event invitation - Participation in a private event in Toronto (May 2025) to discuss key findings with industry peers.
- Global perspectives - Comparative insights into MiFID II and FCA regulatory frameworks, offering a broader perspective on suitability practices.
Interested in participating in this research? Please reach out to one of the contacts mentioned below.
Contact
Roger Hernandez Salinas
Senior Consultant Global Wealth Solutions
Ronald Janssen
Managing Director Goals-Based PlanningRelated Insights
-
03 April 2025Investment suitability in Canada: Navigating the evolving regulatory environmentHow are top financial firms in Canada adapting to new suitability regulations? A new independent study reveals key insights.
-
03 April 2025Spring Statement 2025: Steering clients through the fiscal forecast before the storm hitsSpring Statement 2025: Advisers must help clients navigate upcoming CGT, IHT, and pension reforms—preparing now ensures resilience in an evolving tax landscape.
-
03 April 2025PRESS RELEASE Ortec Finance boosts UK growth with appointment of Mark GloverOrtec Finance deepens its commitment to the UK market with the appointment of Mark Glover as Managing Director – Head of UK Wealth Management.
-
02 April 2025PRESS RELEASE: Ortec Finance recognized in WealthTech100 2025 as a leading innovator in wealth management technologyOrtec Finance has been named in the #WealthTech100 2025 for the 7th year in a row, a testament to relentless innovation!
-
11 March 2025bfinance: Using GLASS to optimize clients investment strategy and achieve their financial goalsUsing GLASS, bfinance have collaborated with their clients to thoroughly assess their financial objectives and strategic asset allocations. bfinance is able to use the optimization feature within GLASS to develop tailored investment strategies, aligning with their clients’ long-term goals.
-
07 March 2025Quarterly Outlook: Q4 2024The outlook is based on the Ortec Finance Economic Scenario Generator (ESG) and offers our perspective on recent developments in the economy and capital markets.
-
04 March 2025Enhancing retirement planning with stochastic cashflow modelling: How OPAL Financial Planning supports you in meeting FCA standardsRetirement planning must evolve. Stochastic cashflow modelling helps firms stay FCA-compliant while giving clients a clearer, risk-adjusted future.
-
28 February 2025Transforming wealth management: Agentforce and OPAL for Goal-Based Planning and Consumer DutySalesforce's Agentforce and OPAL help advisers provide ongoing, compliant advice.
-
06 January 2025Ready or not, here comes 2025: Wealth management gets a glow-upDiscover 2025 wealth management trends: AI, personalization, generational wealth shifts, and tech-savvy client solutions.