On September 29, 2022, members of the Mutual Fund Dealers Association (MDFA) and Investment Industry Regulatory Organization of Canada (IIROC) voted in favour of amalgamating together to create a New Self Regulatory Organization (New SRO) of Canada. The New SRO represents a significant and positive change and is anticipated to entail minimal cost and disruption.
What does that mean for you? Here are some of the key benefits to note:
- Public interest mandate, including increased investor awareness, consolidated reporting, enhanced investor protection, combined investor protection funds, and assistance with complaints
- Reduced duplicative regulatory burden, including the availability of more efficient new and ongoing registration of advisors and firms on one platform
- Flexibility to carry on business as dual-registered firms, allowing mutual funds only dealing representatives to not upgrade proficiencies to that of a Registered Representative dealing in securities and instead complete the Conduct Practices Handbook Course within 270 days from the date of firm’s dual registration
- More efficient regulation of advisors and firms, including reduced operating costs, reduced regulatory fragmentation
- Level playing field for investment firms across Canada, including enhanced opportunities for new firm entry and innovation
- Advancement of fostering of fair and efficient capital markets, including support for greater technology and innovation, strengthened market integrity and a greater product offering at a lower cost
- Investors to gain from more holistic and flexible investment advice, including in underserved or unserved areas, as investors would no longer need to change advisors or firms as investing needs change
- Potential for continued policy streaming and evolution, including review of other registration categories such as Exempt Market Dealers, Portfolio Managers and Scholarship Plan Dealers
- Continued oversight of the consolidated SRO by CSA, including CSA authority to approve or reject any proposed rules
As a valued client of CWB Trust Services, we encourage you to learn more at the links below or to contact your representative to discuss your specific needs.