The members of the Mutual Fund Dealers Association of Canada (MFDA) and the Investment Industry Regulatory Organization of Canada (IIROC) have passed a special resolution approving the amalgamation of the two self-regulatory organizations (SROs) into a new single SRO, focused on fostering an innovative and competitive industry and delivering value for investors.

Effective January 1, 2023, subject to the conditions outlined in the Combination Agreement, the MFDA and IIROC will become one organization that will temporarily be known as the New Self-Regulatory Organization of Canada (New SRO).

The move follows an in-depth consultation by the MFDA and IIROC with the Canadian Securities Administrators (CSA) staff. The Members of both SROs passed the special resolution by more than the required two-thirds of members entitled to vote.

The New SRO will enhance investor protection by creating a separate investor office dedicated to investor education and to help support rule development. There will also be a dedicated Investor Advisory Panel to advise the New SRO on issues related to investors. The New SRO will deliver more efficient regulation and create a level regulatory playing field for investment firms across Canada.

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

This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.