CIRO conducted two cybersecurity table-top exercises in 2023, for small and medium-sized member firms. Following the exercise, CIRO has published a Ransomware Response Playbook, for dealing with ransomware attacks. The report sketches out a framework outlining the high-level steps needed to ensure a timely, coordinated and effective response to a ransomware attack.
The Canadian Investment Regulatory Organization (CIRO) is harmonizing rules for mutual fund and investment dealers and aiming to establish the structure for a new harmonized rule book. CIRO is facing push back on proposals allowing fund dealers to offer order-execution only accounts and to offer managed accounts. CIRO also proposed eliminating temporary discretionary accounts to investment advisors.
Ontario’s financial services regulator, the Financial Services Regulatory Authority (FSRA), has introduced a significant second amendment to the Unfair or Deceptive Acts or Practices (UDAP) Rule. The amendment’s objective is to offer stronger protection for consumers who hold segregated fund contracts, specifically regarding deferred sales charges. The amendment set to take effect on February 14, 2024.
The Financial Services Regulatory Authority of Ontario (FSRA) is tightening test-taking procedures, in the wake of reports of exam cheating. The new test procedures will align with national best practices. FSRA will also introduce tougher consequences for individuals caught cheating and longer waiting period for candidates that repeatedly fail the Life License Qualification Program (LLQP) exam, will be introduced.
CIRO issued a Position Paper which analyses policy options for leveling the compensation playing field between Approved Persons. The current CIRO rules applicable to mutual fund dealers and investment dealers currently take different approaches to directed commission arrangements. Comments on the paper should be delivered in writing, by March 25, 2024.
The Financial Services Regulatory Authority of Ontario, (FSRA) has approved the Canadian Investment Regulatory Organization, (CIRO) as a credentialing body under Ontario’s Financial Professionals Title Protection Act, 2019, (FPTPA). CIRO now has the authority to grant credentials that permit individuals to use the Financial Advisor title in Ontario.
The Office of the Superintendent of Financial Institutions, (OSFI) will be working more closely with The Financial Transactions and Reports Analysis Centre of Canada, (FINTRAC) as digitization and the more integrated global economy lead to higher risks of money laundering. The regulator will also be taking its message to financial institutions, that they need to step up efforts against the problem.
The Canadian Investment Regulatory Organization (CIRO) is publishing Phase 2 of its Rule Consolidation Project rule proposals, for comment. The Phase 2 Proposed DC Rules involve the adoption of rules relating to: margin, debt markets and Inter-Dealer Bond Brokers (IDBBs), and trading. Comments on the Phase 2 Proposed DC Rules should be in writing and delivered by March 11, 2024.
OSC Staff Notice 11-739 (revised) has been issued by the Ontario Securities Commission. Revisions have been made to the Table of Concordance and List of New Instruments. The full version of the Table of Concordance and List of New Instruments as of December 31, 2023, can be found on the OSC Website.
The Financial Services Regulatory Authority of Ontario (FSRA) is proceeding with a rule change on the use of deferred sales charges (DSCs) for investors with existing segregated fund contracts. The rule amendment requires insurers to remove the DSC option for deposits to existing segregated fund contracts and provide investors with disclosure about their options.