CSA to Release Recommendations on Self-Regulatory Organization Framework

​The Canadian Securities Administrators (CSA), the council of the securities regulators of Canada's provinces and territories, recently announced that it is on track to publish recommendations on self-regulatory organization framework.

On June 25, 2020, the CSA has released a consultation paper, which requests feedback on whether the current SRO framework best serves Canadian investors and the investment industry, in light of the evolution of the financial services industry.

The current SRO regulatory framework requires investment dealers to be members of the Investment Industry Regulatory Organization of Canada (IIROC) and mutual fund dealers, except in Québec, to be members of the Mutual Fund Dealers Association of Canada (MFDA).

The CSA's forthcoming position paper will shape the future of this regulatory framework, and will be published for comment this summer.

“The CSA is keenly aware that the culmination of its work on the regulatory framework will have significant and long-lasting impacts on investors, market participants and the Canadian capital markets,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “We are weighing and validating the issues, and considering various options for an enhanced framework that protects the public interest while ensuring fair and efficient capital markets.”