The Canadian Securities Administrators (CSA) has recently published for review and comment CSA Notice and Request for Comment 25-314 – Proposed approach to oversight and refinements to the proposed binding authority framework for an identified ombudservice (the Proposed Approach), for a 60-day period ending September 15, 2025.
At the same time, the CSA is also publishing for comment proposed refinements to the regulatory framework (the Proposed Framework) first published by the CSA for comment on November 30, 2023, which are also due September 15, 2025.
The Proposed Approach provides more details of the binding authority, anticipated to be the Ombudsman for Banking Services and Investments (OBSI). The consultation includes a proposed oversight model for OBSI, and refinements of the review and decision stage of the dispute resolution process. The regulator’s goal is to help modernise the structure of Canada’s capital markets and simplify the complaints process for investors and businesses.
Included with the Proposed Approach, the CSA introduces a Proposed Oversight Framework that balances OBSI’s independence with the need for accountability. Based on the comments received during the 2023 consultation, the regulator is also proposing changes to the second-stage review of the dispute resolution process for OBSI compensation recommendations equal to or exceeding $75,000. For these complaints, OBSI will be required to appoint external decision-makers to review its recommendation before reaching a final decision.
CSA staff advise that many of its participating jurisdictions will require legislative amendments to enable the proposed framework, including the oversight framework. Any amendments to local legislation would be proposed by governments. Proposed legislative amendments would only become law in a CSA jurisdiction if they are proclaimed and in force in that jurisdiction.
CSA Notice and Request for Comment 25-314 – Proposed approach to oversight and refinements to the proposed binding authority framework for an identified ombudservice is available for download from the websites of the participating members of the Canadian Securities Administrators.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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