8.6 C
New York
Wednesday, September 22, 2021
Home Business Financial regulators IIROC and MFDA to be merged into one

Financial regulators IIROC and MFDA to be merged into one

The umbrella organization for Canada’s securities regulators says it plans to merge the regulatory bodies that oversee investment dealers and mutual fund dealers into one new organization, a move praised by both watchdog groups.

The Canadian Securities Administrators, which represents provincial and territorial securities commissions, said Tuesday the new self-regulatory organization would combine the functions of the Investment Industry Regulatory Organization of Canada (IIROC) with the Mutual Fund Dealers Association of Canada (MFDA).

The roles of both regulatory bodies have increasingly overlapped in recent years, prompting calls to review the regulatory framework.

IIROC president and CEO Andrew J. Kriegler said the new organization is important for the financial future of Canadians.

The new pan-Canadian organization will “better protect investors, increase access to advice, and support innovation,” he said in a statement.

MFDA president and CEO Mark Gordon said the new organization’s clear public interest focus will strengthen public confidence while maintaining the advantages of the self-regulatory model.

“The CSA’s decision will benefit all stakeholders by enhancing investor protection and creating significant efficiencies for industry participants,” he said in a statement.

Last August, IIROC said a study conducted by Deloitte LLP showed that a consolidation of the two regulators could result in savings of up to nearly $500 million for the financial services industry over a decade.

The CSA said the new organization will harmonize IIROC and MFDA rules where appropriate and streamline complaint processes.

The umbrella group for Canada’s securities regulators also said it will combine two existing investor protection funds — the Canadian Investor Protection Fund and the MFDA Investor Protection Corporation — into an integrated fund independent of the new organization.

The new self-regulatory framework is the result of extensive research, consultation and analysis, said Louis Morisset, CSA chair and president and CEO of the Autorite des marches financiers.

The organization is “designed to protect Canadian investors and enhance public confidence, accommodate innovation, ensure fair and efficient market operations and navigate continually evolving industry conditions,” he said in a statement.

The next step is to create an integrated working committee to determine the appropriate corporate structure of the new self-regulatory organization, the CSA said.

The new organization will include “governance enhancements” such as ensuring that the majority of board members and its chair are independent to reinforce its public interest commitment, it said.

It will also be required to create an investor advisory panel and solicit CSA comment and input on its annual priorities, business plan and budget, the CSA said.

“The CSA recognizes the high level of skill, dedication and experience that staff from IIROC, MFDA and the existing investor protection funds have consistently brought to their work,” Morisset said.

“The combined forces of these teams will be critical during the creation of the new self-regulatory organization and investor protection fund, and will be crucial to their future success.”

Source link

Today news
Today News 1 runs four of the western GTA’s most influential media websites, offering news, food, lifestyle and entertainment coverage for millions to the Golden Horseshoe and GTA regions. The independently-run, online news source was founded in 2019 and specializes in everything from breaking news to food and restaurant, arts and entertainment and lifestyle coverage.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Netflix in talks to buy Roald Dahl catalogue

Netflix is in talks to acquire the works of Charlie and the Chocolate Factory author Roald Dahl, Bloomberg News reported on Tuesday, citing people familiar with the...

Global economy will suffer as long as rich countries don’t help vaccinate poor ones, OECD warns

A leading international economic watchdog urged developed countries to put more effort into providing low-income countries with coronavirus vaccines in order to ensure...

Winnipeg designer helps customers keep their heads up during pandemic

A Winnipeg headband designer is turning the pandemic blues into beautiful, hand-made headpieces that are spreading across social media and taking off worldwide....

Prairie ranchers take stock of summer drought as decisions about culling cattle loom

Pounded by drought and cattle feed shortages, the last few months have been gruelling for many Prairie ranchers.  Now, as fall approaches and...

Recent Comments