The new exams are based on competency profiles for different categories of approved person depending on their roles with dealer firms.Noko LTD/iStockPhoto / Getty Images
As the end of summer fast approaches, it’s time for advisors to start thinking about new proficiency requirements from the Canadian Investment Regulatory Organization (CIRO) that take effect on Jan. 1, 2026.
For starters, advisors who are investment-dealer-approved persons and affected by the changes should familiarize themselves with the new requirements and speak with their dealers about them, says Elsa Renzella, senior vice-president, member compliance and registration, at CIRO.
“Firms have been consulted extensively on the proficiency model, both as regards to policy and rules and with respect to the makeup of the exams themselves,” she says. “Advisors should reach out to the appropriate teams in their firms to understand if they’re impacted.”
CIRO’s new proficiency model is exam-based, with no mandatory prerequisite courses, and the exams are based on published competency profiles for different categories of approved persons, depending on their roles with dealer firms.
These categories include retail (or institutional) registered representatives and investment representatives, portfolio managers, directors, executives, chief financial and compliance officers and others.
Here are the main points that professionals approved by, or seeking approval from, CIRO need to know about what’s changing next year.
Baseline education or experience
One of the new requirements is the minimum education or experience for registered representatives. Approved persons must have a relevant diploma or degree from an accredited post-secondary institution, or at least four years of relevant experience acceptable to CIRO.
Jean-Paul Bureaud, executive director, president and chief executive officer of investor advocacy group FAIR Canada, says the change is part of a positive reframing from “What courses do you need to take?” to “What kind of knowledge and ability do you need” to advise Canadians about how to invest their hard-earned savings.
Exam-only assessment
CIRO’s current proficiency model uses exams based on mandatory courses offered by the Canadian Securities Institute (CSI). When CIRO’s contract with CSI expires on Dec. 31, advisors will no longer be required to take mandatory courses as a prerequisite to sitting for exams, which will cost $475.
“Candidates can choose how to prepare – either through self-study, a preparatory course provider, or firm training,” Ms. Renzella explains. “It allows learners to prepare according to their own learning style.”
With the new education provider, Fitch Learning, CIRO has developed nine syllabuses and accompanying exams based on the competency profiles. (Fitch Learning acquired CSI from Moody’s earlier this month.)
Conduct training
All investment-dealer-approved persons will be required to take conduct training at no charge. (CIRO says more information about what the training involves is coming). Those approved under the existing proficiency requirements have until the end of 2026 to complete this training. New registrants, however, must complete it within 30 days of approval.
Mandatory CE
Approved persons will also have to complete up to three hours of annual training chosen by CIRO, as well as continuing education (CE) they choose themselves. The number of required CE hours varies based on the approved person’s category.
Mr. Bureaud says it makes sense for the regulator to take more control over CE.
“The financial services industry is constantly innovating,” he says. “This way, CIRO can make sure people are staying abreast of things they need to be staying abreast of, as opposed to just leaving it up to [advisors] to decide what kind of continuing education materials they want to do.”
In 2026, mandatory conduct training will count toward the new CE requirement.
Timeline
The new proficiency requirements take effect on Jan. 1. People approved under current proficiency requirements before Jan. 1 – and continuing in the same role – are exempt, except for the conduct training. In addition, there will be a one-year overlap period that allows candidates enrolled in a course before Dec. 31, 2025, to complete their training by Dec. 31, 2026.
Preparing for the changes
At a high level, Mr. Bureaud says he sees benefits for advisors and investors from the new requirements.
“This is definitely a step in the right direction,” he says. “The overall framework … is going to increase or introduce several improvements to competency and proficiencies.”
Natacha Savard, vice-president and head of training and development with RBC Wealth Management, says her firm has been communicating with its branch management teams to ensure they understand who’s affected and what’s changing.
“We’ve been [using] this same model for many, many years, and with these big changes, there are some nuances and an increased chance for confusion with implementation,” Ms. Savard says. “But … we’ve been working very closely with CIRO, working through all these nuances, and I anticipate that we will have clarity on everything before the end of the year.”