CSA provides guidance for portfolio managers


Technological developments in the financial sector are occurring at great speed and constitute a regulatory priority for the Autorité des marchés financiers (the "AMF"). Without denying the benefits such developments can have for financial markets, it is important to examine the various risks that can impact investor confidence and protection.

In a notice published today, to which AMF staff contributed, the CSA reminds portfolio managers that advising representatives must analyze a product's suitability for clients. It also outlines the points CSA staff will consider in analyzing a business model.

This notice should help blunt the perception that the "advice without a representative" or robo-adviser model is permitted in Canada.

See CSA Staff Notice 31-342 Guidance for Portfolio Managers Regarding Online Advice.