news and outreach

FP Canada introduces 2 new rules

FP Canada has updated its Standards of Professional Responsibility with two new conduct rules. The first new rule is related to naming of a Trusted Contact Person (TCP). The second new rule is related to Conflicts of Interest, specifically prohibiting financial planners from acting as an estate trustee, executor, power of attorney for property, or beneficiary for a client while also providing the client with financial planning services.

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CSA releases updated ESG-related fund disclosure guidance

The Canadian Securities Administrators’ (CSA) Staff Notice 81-334, provides guidance on the disclosure of investment funds as along with guidance relating to a new fund classification – the ESG Limited Consideration Fund. The Notice also clarifies the CSA’s view of what constitutes a “sales communication” and provides guidance on the types of investment funds that may market themselves as focusing on ESG.

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CIRO releases 2024 Compliance Priorities Report webcast

CIRO has released a new webcast highlighting the CIRO Compliance Priorities Report for 2024. The webcast covers topics such as Client Focused Reforms, upcoming changes to the compliance program, cybersecurity, along with many other topics. Investment Dealer webcast viewers will earn 0.75 Compliance continuing education (CE) credits and Mutual Fund Dealer webcast attendees will earn 0.75 Business Conduct (non-ethics) credits.

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Moody’s report: shift to T+1 settlement poses short-term risk

To reduce market inefficiencies, Canadian and U.S. securities markets are moving to a standard trade settlement cycle of T+1 for investments that currently settle on a T+2 basis. According to a new report from Moody’s Ratings, the move to a T+1 settlement cycle in Canada will create liquidity risk for asset managers in markets that are still operating on a T+2 basis. The move to a T+1 settlement cycle in Canada, will occur on May 27, 2024.

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OSC releases 2024 to 2030 Strategic Plan

The Ontario Securities Commission (OSC) released their Strategic plan, identifying the OSC’s central goals for 2024 to 2030. The Strategic Plan highlights a shift in the OSC’s approach to retail investors. It also includes tougher, more visible enforcement, increased support for capital formation and innovation and a shift toward anticipating and planning for trends that are likely to require regulatory attention.

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CIRO proposes new integrated fee model

CIRO is seeking feedback on its proposed new approach to its fee model. Fund dealer fees are currently calculated based on assets under administration (AUA). Under the proposed integrated fee model, fund dealer fees would be calculated based on both the size of their revenues and number of reps. Comments on the Proposed Amendments should be in writing and delivered by June 24, 2024.

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CSA reports highlight positive trends in investment fund industry

The Canadian Securities Administrators (CSA) has released two research reports examining the investment fund industry and investor behaviour post-implementation of the Client Relationship Model Phase 2 (CRM2) Amendments. The research reports look at trends in investment fund fees and risk-adjusted, gross performance over 2013-2020, which includes the period before and after the Amendments took effect.

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Phase 3 of CIRO Rule Consolidation published for comment

CIRO is publishing Phase 3 of its Rule Consolidation Project rule proposals, for comment. The Phase 3 Proposed Rules involve the adoption of rules relating to membership and member business activity approval, clearing and settlement of trades and trade delivery standards, and examination, investigation and enforcement rules. Comments on the Phase 3 Proposed DC Rules should be in writing and delivered by July 17, 2024.

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CIRO Releases Three-Year Strategic Plan

The Canadian Investment Regulatory Organization (CIRO) has released its three-year Strategic Plan. The Strategic Plan is grounded in CIRO’s new Vision, Mission and Values and has six strategic objectives. The Strategic Plan also lays out CIRO’s plan to focus on Transformational Initiatives that support the priorities of stakeholders and regulatory partners.

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Do your advisor’s notes pass the sniff test?

On December 31, 2021, the Canadian Securities Administration (CSA) passed regulations (National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations “Client Focused Reforms”, (CFRs) based on the principle that in the client/advisor relationship, the client’s interests come first. With the CFRs, note taking to support suitability of a client’s account, became the law.

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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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