On August 3, 2021, the Canadian Securities Administrators (CSA) released a framework for replacing the two major Canadian Self- Regulatory Organizations (SROs) – the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA) with a single regulatory entity (Position Paper). The CSA has decided to move forward to implement a new single enhanced SRO (New SRO) and, separately, to consolidate the two current investor protection funds (IPFs) into a single protection fund (New IPF) that will be independent from the New SRO.
- The process to establish and operationalize the New SRO and New IPF will have two phases. Phase 1 will focus on the design of the New SRO and the New IF, the integration of the existing SROs and IPFs under the new framework and the adoption of the issue-specific solutions detailed in the Position Paper.
- Phase 2 will consider whether it is appropriate to incorporate into the New SRO other registration categories, including Portfolio Managers, Exempt Market Dealers and Scholarship Plan Dealers, which are currently overseen by the statutory regulators. Possible modifications to the New IPF (e.g., extending coverage to other registration categories) will also be considered.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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