Majority of Canadians give thumbs down to simple SRO merger

By The IJ Staff | September 09 2020 09:00AM

Photo: Freepik

More than two-thirds of Canadian investors believe that designing a new SRO through a review that emphasizes accountability, government oversight and investor protection is preferable to a simple SRO merger, according to a national poll released by the Mutual Fund Dealers Association of Canada (MFDA).

The poll also indicates that 88 per cent of Canadian investors believe that regulators should provide more oversight of the investment industry, with 91 per cent saying that financial products and services that are alike should be regulated in the same way.

Modernizing the framework

A process is currently under way to modernize the framework for the two existing SROs – the MFDA, which oversees mutual fund dealers in Canada, and the Investment Industry Regulatory Organization of Canada (IIROC), which oversees investment dealers and has advocated for a merger with the MFDA.

"Given the significant responsibility of SROs in performing front-line regulation of advisory firms that provide advice, products and services to investors, it is no surprise that Canadians want a future SRO model that reflects appropriate investor protection, including strengthened accountability and governance,” said Mark Gordon, MFDA president and CEO.

“A truly modern and forward looking SRO must reduce regulatory complexity, be investor focused and ultimately, pursue the public interest over all other interests.”

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