Order Execution Only Project

The Canadian Investment Regulatory Organization (CIRO) is reviewing the limitations in the order execution only (OEO) channel regarding information and tools that OEO dealers can offer clients.

The DIY investing segment has experienced significant growth and evolution over the past few years. DIY investors are increasingly turning to unregulated sources such as online forums, social media and finfluencers to help them make important financial decisions. Recent research from CIRO revealed that many DIY investors were open to additional tools through their DIY investing platform that would provide further information, research, alerts, or education. Many also expressed a desire for more regulation and safeguards to prevent the spreading of misinformation through social media. It is imperative that DIY investors can access trustworthy, high-quality information in a regulated forum to empower them to make well-informed investment decisions.

At the same time, there is a growing industry consensus that the present limitations on OEO dealers are preventing important information and warnings from reaching DIY investors. Industry feedback has consistently indicated that the current OEO Guidance has created confusion and unnecessary limitations regarding the kinds of decision-making supports that OEO Dealers can offer their clients.

In light of the above, CIRO identified updating the existing guidance on OEO account services as a priority for 2026.1 CIRO’s objective is to provide flexibility that allows OEO Dealers to better service clients’ needs in this channel without compromising investor protection and while remaining consistent with the IDPC Rules (which prohibit recommendations in OEO accounts).

CIRO is seeking input from stakeholders, including dealer firms, industry representatives, and investor advocates in this consultation process.

• 1As aligned with CIRO’s strategic objective to enable greater access to advice (CIRO Strategic Plan FY 2025-2027, published on April 11, 2024).