On June 9, 2020 the Investment Industry Regulatory Organization of Canada (IIROC) released its proposal, “Improving Self-Regulation for Canadians”, outlining the benefits of bringing together IIROC and the Mutual Fund Dealers Association of Canada (MFDA) as divisions of a consolidated self-regulatory organization (SRO).  In the view of IIROC benefits would include enhanced investor protection and access to advice, and a significant reduction in overlapping regulatory burden and red tape.

IIROC developed its proposal after  dialogue with a diverse number of stakeholders including investors, investment and mutual fund dealers and advisors, professional bodies and industry associations.  

IIROC’s objective was to ensure that any proposal recommended to the Canadian Securities Administrators (CSA) in its upcoming review of the investment industry SROs must:

• Be positive for investors, regardless of where they live or how many assets they have;

• Enhance investor protection;

• Have a positive impact on dealers’ and registrants’ ability to serve Canadians,

Have a positive impact on dealers’ and registrants’ ability to serve Canadians, regardless of size or business model;

• Reduce duplicative regulatory burden;

• Be straightforward, simple and inexpensive to execute, with minimal disruption to Canadians, the industry, or the CSA oversight regime; and

• Position the SRO model for continued policy streamlining and evolution.

According to IIROC its proposal can be implemented within three months, within a year of approval from the CSA.

For more details of the IIROC proposal: https://www.iiroc.ca/Documents/2020/IIROC_consolidation_FNL.pdf

For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.

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