Last year’s data hack involving financial services firms and file transfer service GoAnywhere, has resulted in multiple class actions filings. Affected clients may wonder what happens next, given managing overlapping and multiple class actions originating in different jurisdictions, are challenging to address. Class actions are regulated provincially.

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The Financial Transactions and Reports Analysis Centre of Canada, (FINTRAC) has taken its corporate systems offline, as it manages what it calls a “cyber incident”. The incident does not involve FINTRAC’s intelligence or classified systems. FINTRAC has taken its corporate systems offline as a precautionary measure, to ensure their integrity and protect the information that the Centre maintains.

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The Federation of Independent Dealers (FID), formerly the Federation of Mutual Fund Dealers (FMFD), launched under its new name. The name change reflects the evolving landscape of the financial industry and signals the expansion of their mandate. The FID remains committed to members as they evolve in response to changes in investor needs, regulatory environment, and competitive landscape.

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The Financial Services Regulatory Authority’s has launched a credential checking tool to make it easier for consumers in Ontario, to check that advisors are properly qualified. The new Check Credentials Tool will help verify holders of protected titles including Financial Advisor and Financial Planner, approved by an FSRA-approved credentialling body.

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The Autorité des marchés financiers (AMF) has issued rules to establish a common set of processes and timelines when dealing with client complaints. The Canadian Investment Regulatory Organization (CIRO) Investment dealer members and mutual fund dealer members will be exempt from the new rules, which will take effect July 1, 2025.

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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.

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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.

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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.

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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.

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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.

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