CIRO introduces new proficiency model for investment dealers
The Canadian Investment Regulatory Organization (CIRO) has selected Fitch Learning as its new service provider for Approved Persons of investment dealers. CIRO is working closely with the Canadian Securities Institute (CSI) to ensure a seamless transition to the new framework. The new model is set for full implementation by January 1, 2026.
OSC reviewing fund risk rating and ETF regulation
The Ontario Securities Commission (OSC) released an annual Summary Report providing an overview of the activities of the Investment Management Division. Highlights include the OSC review of fund managers’ use of discretion in setting risk ratings and the analysis of potential gaps and enhancements to the regulatory regime for ETFs.
Ontario government commits to introducing new licensing regime for MGAs
In its 2024 Fall Economic Statement, the Ontario government proposed the creation of a new licensing regime for life and health insurance intermediaries, such as managing general agents (MGAs). The government pledged new oversight aimed at enhancing consumer protection. The proposal was endorsed by the Canadian Life and Health Insurance Association (CLHIA).
CIRO proposes to modernized arbitration program
The Canadian Investment Regulatory Organization’s (CIRO) has proposed a set of proposed reforms to its investment dealer arbitration program and extending to the mutual fund dealer sector. The proposed changes would enhance the accessibility, efficiency and transparency of the arbitration process for both investors and dealers. The new consultation is out for comment until January 31, 2025.
OSC identifies need for standardized ESG ratings
The Ontario Securities Commission (OSC) has released findings from a study, which highlights the challenges faced by retail investors, in evaluating the ESG attributes of investment funds and how the lack of standardization in these ratings, impact investor decisions. The study shows that ESG ratings, may have a major influence on fund selection among retail investors, ranking second only to a fund’s past performance.
FINTRAC warns of risky activity involving legal profession
The Financial Transactions and Reports Analysis Centre of Canada, (FINTRAC) has issued a special bulletin to warn banks and securities dealers about the risks of illicit activity involving legal professionals. FINTRAC lists activities such as the misuse of client or trust accounts, real estate purchases, and the creation and management of companies and trusts as potential risks and it details red flags for industry firms to watch out for.
CIRO consults on proposed disgorgement distribution policy
The Canadian Investment Regulatory Organization (CIRO) is republishing for public comment, its Proposal on Distributing Funds Disgorged and Collected through New SRO Disciplinary Proceedings to Harmed Investors (Proposal) as Notice 23-0010. No formal process currently exists for returning money to harmed investors. Comments should be submitted CIRO in writing, by January 20, 2025.
CIRO unveils Phase 4 of the Rule Consolidation Project
The Canadian Investment Regulatory Organization (CIRO) has published Phase 4, of proposed harmonized dealer rules, for comment. The latest phase focuses on rules relating to approval and proficiency for individuals, managing significant areas of risk, and business conduct and client accounts rules. The comment period runs until February 4, 2025.
OSFI publishes its 2023-24 Annual Report
The Office of the Superintendent of Financial Institutions (OSFI) published its 2023-24 Annual Report, which highlights key accomplishments over the past year as well as its 2024-2025 Departmental Plan. Looking ahead, OSFI’s 2024-2027 Strategic Plan outlines six priorities: expanded mandate, supervisory renewal, culture initiatives, data management, critical functions and operational resilience.
OSC proposes new fund structure for retail funds holding long-term assets
The Ontario Securities Commission (OSC) has released a consultation paper proposing the creation of a new type of investment fund category, the Ontario Long-Term Asset Fund (OLTF), to expand retail investor access to illiquid long-term assets, such as infrastructure projects. The proposal is out for comment until February 7, 2025.
The information contained on the Association of Canadian Compliance Professionals (“ACCP”) website is for general information purposes only and is the opinion of the writer(s). This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. We strongly recommend that you seek appropriate, qualified professional advice before acting or omitting to act based on any information provided on the ACCP website.
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