After an extensive, two-stage consultation by the Canadian Investment Regulatory Organization (CIRO), on March 12, 2026 the self-regulatory agency published the updated Guidance on Order Execution Only (OEO) account services and activities (the Updated OEO Guidance). The Updated OEO Guidance replaces the previously published 2021 Guidance Note 3400 21 003 and addresses the evolving needs of the growing do-it-yourself (DIY) investor population.
For context, BLG’s Sept. 3, 2025 bulletin summarized CIRO’s proposed overhaul of the OEO model, which sought to refine the overly broad recommendation prohibition, expand the permissible scope of decision‑making supports, and introduce principles‑based safeguards to protect investors. The Updated OEO Guidance aligns closely with those proposals, now formally adopting a principles‑based framework and confirming that OEO dealers may offer a broader suite of factual, educational, and tool‑based supports – so long as they avoid endorsing specific investment actions.
In addition to summarizing key updates in the Updated OEO Guidance, we have included BLG’s suggested actions for OEO Dealers at the end of this bulletin to assist our clients with practical next steps.
CIRO included a helpful blackline showing the changes made to the Updated OEO Guidance and we urge OEO Dealers to canvass the full suite of changes.
Background and purpose of the updated OEO guidance
The Updated OEO Guidance responds to stakeholder concerns that the prior framework was overly restrictive – particularly the prohibition on communications that could be “reasonably expected to influence” clients – thereby preventing OEO dealers from providing important factual information and decision making supports.
Through the Updated OEO Guidance, CIRO seeks to:
- modernize the OEO framework to align with current investor behavior, including reliance on digital platforms and to mitigate the influence of unregulated online sources;
- clarify what kind of information dealers can provide without violating the prohibition on recommendations under CIRO’s Investment Dealer and Partially Consolidated (IDPC) Rules; and
- enable access to high quality, factual, and regulated educational resources for DIY investors.
Key Elements of the updated OEO guidance
Key elements in the Updated OEO Guidance include:
1. Clarification on the recommendation prohibition
CIRO clarifies that OEO dealers may provide factual, informative resources and decision‑making supports provided that these do not endorse a specific investment decision.
This clarification addresses industry concerns that the prior prohibition was too broad and, as a result, captured neutral factual information under the previous “reasonably be expected to influence” standard.
2. Account appropriateness
The Updated OEO Guidance expands on dealer responsibilities for noticing red flags from investors indicating that DIY investing is not appropriate for an individual. In addition to previously articulated danger signs, such as the investor having ongoing difficulties with online activities or seeking personalized investment recommendations, CIRO notes that receiving client information that is inconsistent with the requested account type also triggers potential concerns regarding appropriateness.
3. Expansion of permitted decision‑making supports
CIRO adopts a principles‑based approach with respect to permitting OEO dealers to provide decision-making supports to clients and provides non‑exhaustive examples of supports dealers may offer, which include:
- alerts and notifications;
- educational materials;
- self‑help tools;
- sample portfolios and filtering tools (provided they remain generic and non‑endorsing).
This is a substantial expansion from the prior guidance and encourages innovation in digital DIY platforms.
4. Additional safeguards for investor protection
To maintain the prohibition on recommendations and avoid client misunderstanding, CIRO expects dealers to implement safeguards such as:
- clear, plain‑language disclosure,
- measures to avoid perceived personalization or endorsement of a particular investment or investment decision,
- conflict‑of‑interest management, and
- ensuring communications cannot reasonably be interpreted as recommendations.
These safeguards are not prescriptive and non-exhaustive, and dealers have the flexibility to tailor them to their own platforms.
5. Conflicts of interest
The Updated OEO Guidance contains an enhanced discussion around conflicts of interest, including a caution against using gamification techniques or digital features that align with the dealer or an affiliate’s interest as opposed to being in the client’s best interest. In considering the sufficiency of disclosure of material conflicts of interest, OEO dealers should not assume that all investors have a baseline understanding of conflicts and may need to avoid certain conflicts if they cannot be adequately managed through disclosure or otherwise – this will depend on the level of investor sophistication.
6. Fully or partial proprietary OEO product shelves
The Updated OEO Guidance indicates CIRO’s evolved stance on OEO dealers with wholly or largely proprietary or affiliated product shelves. The previous guidance indicated that such a model would “raise serious concerns as to how [that model] could be reconciled with the recommendation prohibition and address the requirement to re would raise particular considerations regarding the OEO Dealer’s ability to address conflicts of interest in the best interests of clients.” The Updated Guidance instead notes that such a model would require a notice of material change to business activities as well as consideration of how to address inherent conflicts in the best interests of clients.
7. Expectations around implementation
CIRO emphasizes that dealers should assess their existing decision‑making support tools against the updated framework and consult staff where uncertainty exists, particularly if developing new or innovative features.
While the Updated OEO Guidance contemplates consulting with CIRO staff in these circumstances, we highly recommend first discussing any proposed decision-making support tools with your legal counsel.
Practical implications for OEO dealers
While the Updated OEO Guidance provides dealers with greater flexibility to design and deploy client-support tools without breaching the recommendation prohibition, OEO dealers should be mindful of the limitations on what is permissible. The Updated OEO Guidance presents an opportunity for firms to enhance their regulatory compliance while taking the opportunity to mitigate investor reliance on unregulated online sources by providing high‑quality, regulated information.
Accordingly, we recommend that OEO dealers:
- Conduct a gap assessment: Re‑assess any client‑specific prompts, curated lists, trade ideas, or “suggested baskets” that could be interpreted as recommendations.
- Product governance: Formalize shelf criteria and access gates for complex products, and document testing and periodic reviews of same.
- Digital design: Catalogue digital engagement practices, eliminate prescriptive nudges, and ensure neutral presentation of information.
- Controls and testing: Implement pre‑launch reviews for client-support tools/content and establish periodic audits and surveillance for potential advice indicators.
- Disclosures and training: Refresh disclosures to reflect the Updated OEO Guidance and ensure that staff training (including marketing and product teams) addresses the recommendation prohibition as contemplated in the Updated OEO Guidance.
- Vendor oversight: Ensure that third‑party content used on the platform remains non‑advisory and is aligned with firm policies and the Updated OEO Guidance.
How BLG can help
The Updated OEO Guidance presents an opportunity for marketplace participants, not just OEO Dealers, to review existing client-support tools and practices to assess compliance with CIRO’s updated framework. We encourage you to reach out to your usual BLG lawyer with any questions about the impact of the Updated OEO Guidance on your business.
