New guidance allows broader tools, education and risk alerts without crossing into advice
Canada’s self-regulatory body for investment dealers has unveiled updated guidance aimed at modernising how order execution only (OEO) platforms support retail investors; a move designed to improve investor protection while giving firms more room to innovate.
The Canadian Investment Regulatory Organization (CIRO) said the revised framework will allow OEO dealers to broaden the decision-making resources they provide to clients without crossing into personalized advice. It’s intended to strengthen safeguards while enabling DIY investors to navigate increasingly complex markets.
The regulator noted that consultations on the previous rules highlighted growing concern that limits on the types of supports offered by execution-only platforms were leaving retail traders to rely on unregulated sources such as social media, online forums and financial influencers.
As a result, updating the guidance became a key priority for the organization’s 2026 agenda, reflecting the rapid expansion of self-directed investing in Canada.
“The new OEO guidance is a major step forward for both the industry and investors,” said Alexandra Williams, Senior Vice-President, Strategy, Innovation, and Stakeholder Protection at CIRO. “It enables dealer members to provide more decision‑making supports, including timely, relevant educational resources, notifications, and alerts tailored to client needs. For investors, it means access to high‑quality tools from reputable, regulated sources to ultimately enhance their protection.”
CIRO’s updated guidance outlines that dealers can now offer a wider range of general decision-making tools, educational content and risk alerts, provided they do not amount to tailored recommendations or suitability assessments.
CIRO emphasized that the distinction between permitted supports and advice remains central to the OEO model. Firms must ensure any information or features provided are broadly applicable and do not take into account an individual client’s personal circumstances.
The regulator also expects firms to maintain strong compliance oversight and clear disclosures to help investors understand the nature and limits of execution-only services.
According to the guidance, enhanced supports could include improved investor education initiatives, portfolio analytics, model portfolios based on general assumptions, and timely warnings about risky trading behaviours.
CIRO believes the changes will help bridge a gap between the growing demand for accessible investment tools and the need to uphold market integrity.
The guidance takes effect immediately, with CIRO signalling it will continue to monitor industry practices and investor outcomes as platforms adapt to the new framework.
Key Safeguards for OEO Dealers
According to the updated CIRO guidance, OEO dealers are expected to implement a streamlined set of general safeguards when offering decision-making supports. While these are principle-based rather than prescriptive, the following core protections are required to maintain the OEO model:
1. Meaningful Disclosure and Transparency
- Plain and Clear Language: Dealers must provide plain, clear, and meaningful disclosure to clients who may have varied levels of financial literacy.
- Real-Time Delivery: Rather than "one-time" or generic disclaimers at account opening, dealers should provide continuous disclosure—such as pop-up alerts or notifications—as the client engages with a specific product or service.
- Third-Party Content: When providing content that includes recommendation language (such as research reports), dealers must make it explicitly clear that the endorsing language is from a third party and that the dealer does not endorse the recommendation.
2. Objective Design and Monitoring
- Transparent Standards: Support tools must use clear descriptors and transparent, objective criteria.
- Asset Allocation Limits: Dealers may provide sample portfolios that set out asset allocations, but they must not include specific securities or derivatives in a way that endorses a specific investment decision.
- Regular Maintenance: Dealers are expected to perform regular monitoring and updates of their tools to ensure information remains accurate.
3. Conflict and Risk Management
- Conflict Mitigation: Dealers must address or avoid material conflicts of interest that arise from the tools or services they offer.
- Proprietary Product Shelves: Standard safeguards may not be sufficient for dealers who primarily offer proprietary or affiliate products; these firms are expected to contact CIRO early in their planning phase.
- High-Risk Warnings: Dealers should include explanatory language regarding the risks of the OEO channel, specifically highlighting behaviors that could lead DIY investors to "disastrous results".
