SIMA backs CIRO’s incorporated approval person proposal, calls for flexibility on team ownership

TORONTO, Nov. 6, 2026 /CNW/ — The Securities and Investment Management Association (SIMA) today welcomed the Canadian Investment Regulatory Organization’s (CIRO) proposed incorporated approved person (IAP) compensation option, while urging changes to its proposed ownership rules to preserve team-based advisory businesses.

SIMA says the proposed IAP model is an important step toward a more level playing field for advisor compensation. The association supports the proposal to make adoption of the model optional rather than obligatory for dealers and to allow approved persons to provide other financial related services, such as insurance or financial planning, since many advisors hold other licenses.

“We appreciate the substantial work CIRO put into this important project, given the many complexities involved,” said Andy Mitchell, President and CEO of SIMA. “We also welcomed CIRO’s longer-than-usual consultation period, which allowed members to consider the framework more thoroughly. We support the model with a few key recommendations.”

The industry’s main concern with the proposal is the limitations it imposes on the ownership of corporations. Under the proposal, only an approved person and related persons can be shareholders, while SIMA recommends allowing multiple owners.

The industry already has many team-based models, and experience has shown that clients are better served through teams. Eliminating the team model would significantly disrupt industry operations and could even negatively affect services to investors. With the team model, approved persons can provide continuity of service and ensure smooth succession planning to better serve clients. Teams should also be allowed to be multidisciplinary and provide a variety of services to clients.

SIMA looks forward to continuing to work with CIRO to develop a framework that protects investors, preserves operational flexibility, and supports the long-term availability of high-quality advice for Canadians.

About SIMA

The Securities and Investment Management Association empowers Canada’s investment industry. It is the leading voice for the securities and investment management industry, which oversees approximately $4.5 trillion in assets for over 20 million investors and Canadian capital markets participants. SIMA members–including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers–are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.

SOURCE Securities and Investment Management Association