Canadian securities regulators are establishing a new self-regulatory organization that will oversee the country’s investment industry, consolidating the functions of two existing entities – the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
The creation of the new regulator, announced Tuesday, is the result of more than 18 months of feedback and consultation from various industry participants, after the Canadian Securities Administrators – an umbrella organization of Canada’s provincial and territorial securities commissions – announced in December, 2019, that it was considering an overhaul of the regulatory framework that governs IIROC and MFDA.
The CSA also announced that it would also combine two investor protection funds – the Canadian Investor Protection Fund and the MFDA Investor Protection Corporation – into a single fund that will be independent from the new organization.
Some investors and industry participants have argued the existence of two separate investment industry self-regulatory organizations, or SROs, has been unnecessary, given their overlapping areas of oversight.
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