The Canadian Securities Administrators (CSA) published a staff notice April 28, summarizing the CSA’s oversight of the country’s self-regulatory organizations (SROs) during the 2021 calendar year.
In the report, CSA Staff Notice 25-303, 2021 CSA Annual Activities Report on the Oversight of the Self-Regulatory Organizations and Investor Protection Funds (IPFs), the CSA summarizes the activities of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA), and its oversight of the two entities. It also discusses oversight of the Canadian Investor Protection Fund and the MFDA Investor Protection Corporation.
“SROs are entities that have been given the responsibility by securities regulators to govern the operations and business conduct of certain players in the investment industry, with a view to promoting the protection of investors and the public interest,” the CSA states.
The report lists the IIROC and MFDA rule and by-law amendments completed, withdrawn and in progress at the end of 2021. At IIROC, the regulator completed 13 amendments, withdrew three and had five amendments still in progress at the end of the year. The MFDA, meanwhile amended four by-laws, withdrew two proposed amendments and had three amendment proposals in progress at the end of 2021.
The report also discusses the creation of a new SRO and commits to publishing an annual activities report on its oversight of the new SRO and IPF when they are created in the future. “The CSA continues to make progress towards the creation of a new, single, enhanced SRO that will consolidate the functions of the existing SROs. This also includes the creation of a new IPF, which will combine the existing IPFs into an integrated fund independent of the new SRO.”
Work is also underway to identify and implement improvements to the CSA’s methodology for coordinated oversight of the SROs and IPFs, and to formalize a number of practices and processes already followed by SRO staff.
