Frequently Asked Questions |
Suitability
Review
What
is Suitability?
What
changes have been made to the Suitability Review?
How
do BMO InvestorLine clients benefit from changes to the Suitability
Review?
What is Suitability?
Until
recently, opening a direct brokerage account required that you complete
an application form that included details around your investment
objectives and your intended approach to self-directed investing
(Income, Balanced, Growth, Aggressive Growth).
Registered
investment representatives were required to review each of your
orders and determine whether or not they were suitable when compared
to your specified investment objectives. This is called the Suitability
Review.
What
changes have been made to the Suitability Review?
On
April 10, 2000, securities
regulators announced changes to the Suitability Review for registered
investment dealers who provide trading services and no investment
advice or recommendations. These changes allowed BMO InvestorLine
to apply for an exemption from the rules that require us to check
the suitability of each trade we process.
How do our clients benefit from changes to the Suitability Review?
Our registered
investment representatives will no longer be required to review
each of your orders and determine whether or not they are suitable
when compared to your specified investment objectives. This means:
- Faster
order fills - your orders may be filled more quickly now that
we don't have to check each order against your investment objectives
- Better
service - registered investment representatives will be freed
up from order verification to answer your questions
- Truly
independent investor experience - your orders will be placed
quickly and accurately, based on your research, knowledge and
experience, without being slowed down by someone cross-checking
them
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