Under new registration rules issued by the Canadian Securities Administrators that come into force on Sept. 28, Canadian brokers and portfolio managers can register as Exempt Market Dealers (EMD) – a category for those who deal with clients with at least $150,000 to invest. To qualify as an EMD, certain requirements need to be met such as having exclusive registration in one province, not providing suitability advice about the trades or financial services, not holding or having access to client's assets, etc.

And compliance experts say that there will be a shift of clients to the EMD category wherein there is less regulatory protection. “There'll be some migration that's going to happen” to avoid heavier regulatory scrutiny, says Prema Thiele, a partner in the Toronto office of Borden Ladner Gervais LLP.