The Mutual Fund Dealers Association of Canada (MFDA), now part of the CIRO, once led the way in understanding retail investor behaviour. Through three major client research studies in 2017, 2020, and 2022, the MFDA provided critical insights into how Canadians invest: their age, wealth, product choices, fee structures, costs, performance and mutual fund holdings. These reports helped regulators and industry participants identify trends, assess risks, and strengthen investor protection in a rapidly evolving financial landscape.
That legacy is now at risk.
FAIR Canada is deeply disappointed by CIRO’s decision to indefinitely pause its client-data collection project. The project would have required all CIRO members to submit anonymized data on retail clients — information essential for understanding investor outcomes and emerging risks. After failing to deliver the research in 2024, CIRO has opted to shelve the initiative entirely.
This is a troubling step backward. Any regulator, including a self-regulatory organization (SRO), operating in the public interest must ground its oversight in robust, reliable data. Without it, CIRO cannot credibly assess investor outcomes, identify systemic issues, or fulfil its public interest mandate. The Client Data Project could have built on the MFDA’s foundation, offering a clearer picture of investor demographics, costs, and activity across firms and channels.
Such data is also vital for evaluating the different advisory channels and understanding investor behaviour. While the initial data collection initiative may require additional effort, routine reporting becomes manageable over time. The payoff is stronger, evidence-based regulation..
We urge CIRO to reconsider its decision. Recommitting to this initiative, publishing a clear timeline, and sharing anonymized, aggregated findings would equip CIRO with the evidence it needs to effectively fulfill its public-interest mandate.