CIRO proposes extending independent director terms to 12 years. The Canadian Investment Regulatory Organization, a self-regulatory body with delegated authority over investment dealers, is seeking public comment on extending consecutive term limits for independent directors from four terms to five, and permitting chairs to serve up to six consecutive terms. Critics argue that longer tenures risk compromising the independence that underpins delegated regulatory authority. In self-regulatory organizations, independence is not merely a corporate governance label but a credibility requirement. Term limits exist to preserve institutional distance and prevent governance drift as relationships deepen and challenge becomes harder. The proposal must demonstrate why a decade-long tenure remains consistent with genuine independence from public perspective, not just internal renewal processes.
