IIROC guidance highlights limitations on limitation of liability clauses in retail client account agreements
“By signing below, you agree not to sue me.” Not so fast, says Canada’s primary regulator of investment dealers. On October 10, 2019, the Investment Industry Regulatory Organization of Canada (IIROC) issued what it called a Guidance Note regarding exclusion of liability clauses in retail client account agreements that it sees as inconsistent with investment dealers’ regulatory obligations. IIROC published this guidance after noticing objectionable clauses in its review of investment dealers’ agreements that either purport to exclude dealers’ liability for client losses completely, arbitrarily limit damages from breaches by the dealer, or attempt to relieve dealers from securities law ... [more]
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