The Canadian Securities Administrators (CAS) has announced the creation of a single self regulatory organization (SRO) for the investment sector. According to a statement by the CSA, the SRO will consolidate the functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). The CSA will also combine two existing investor protection funds – the Canadian Investor Protection Fund and the MFDA Investor Protection Corporation – into an integrated fund independent of the new SRO.
The CSA states that the new SRO will facilitate easier and more cost-effective access to a broader range of investment products and services for the public, and is expected to result in cost savings for dealers. The new SRO will also harmonize rules and will seek to streamline their complaint processes.
The CSA is in the process of creating an Integrated Working Committee to determine the appropriate structure of the new SRO. It will also oversee incorporating a new governance structure and integrating the current functions of the existing SROs and separately, the two existing investor protection funds.
Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers, issued the following statement on the SRO:
“The new self-regulatory framework is the result of extensive research, consultation, and analysis that informed the creation of a framework designed to protect Canadian investors and enhance public confidence, accommodate innovation, ensure fair and efficient market operations and navigate continually evolving industry conditions.”
The CSA is the council of the securities regulators of Canada’s provinces and territories that attempts to harmonize regulations for the Canadian capital markets across the various regional regulators.
