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).
The approval follows a consultation by the Canadian Securities Administrators (CSA).
Effective Jan. 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), explains the announcement.
The New SRO “will deliver more efficient regulation and create a level regulatory playing field for investment firms across Canada,” says the announcement.
The organizations say the benefits of the amalgamation include easier access for investors to different products. The New SRO will also 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.
"I am pleased that the members of IIROC and the MFDA voted to proceed with the amalgamation of the two SROs," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. "Their decision to move in this direction will provide Canada with a single enhanced SRO that will have a clear public interest mandate, will increase efficiencies, and will advance the fostering of fair and efficient capital markets."
