Canada Disability Benefit Act Receives Royal Assent
Some really interesting and exciting news was announced regarding a new federal benefit meant to support working-age Canadians with disabilities; recently, the Canada Disability Benefit Act received royal assent. As we know, financial stability and financial planning is so important for this client sector as their financial needs may exacerbate or vary over time, or as they age, or depending on the type and severity, of the disability. While much is still unknown about this new benefit (e.g., who will qualify, benefit amounts, etc.), read more to prepare for the effective date of the new law which will be no later than one year from June 22, the day the act, formerly Bill C-22, received royal assent.
OBSI adds two consumer interest directors to board
The Ombudsman for Banking Services and Investments (OBSI) made an important announcement regarding structural and organizational changes following its public consultation on governance. In part, two consumer interest directors are to be added to the board in the hopes of achieving greater consumer representation. You can read the full release describing this and other changes here. Maureen Jensen, OBSI Board Chair has said: “Based on the input received from stakeholders, we are making important changes to further enhance the consumer and investor voice on our board, to create a broader and more flexible approach for industry director selection, and to increase our stakeholder outreach programs.”
Climate Risk Forum: Help shape our approach to climate-related risks
Today, the Office of the Superintendent of Financial Institutions (OSFI) launched the Climate Risk Forum (CRF) to build awareness and capacity within Canada’s financial sector to respond to climate-related risks. The CRF is a virtual forum used by OSFI to organize its climate engagement activities. It connects OSFI with domestic partners and stakeholders to help the Canadian financial sector navigate the challenges of managing climate-related risks.
FSRA targets advisor chargeback in updated DSC proposal
With the DSC ban now in effect for segregated funds, firms with insurance advisors selling in Ontario will be interested in reviewing FSRA’s proposed amendment which addresses the removal of DSCs on existing segregated fund contracts. It should be noted that the proposal would apply to transactions that occur after the amendment takes effect (i.e., the amendment won’t be retroactive). The consultation period ends June 30. For clarity, FSRA has created this flowchart on the last page of the proposal.
NEW SRO Changes its Name to Canadian Investment Regulatory Organization
In April 2023, members of the New Self-Regulatory Organization of Canada (New SRO) approved the new name of the organization to Canadian Investment Regulatory Organization (CIRO). This change of name is a significant step forward in the amalgamation of the two, previously separate, regulatory organizations the Mutual Fund Dealers Association of Canada (MFDA) and the Investment Industry Regulatory Organization of Canada (IIROC). On June 1, 2023, CIRO executives and employees opened the Toronto markets to commemorate the occasion.
Congratulations to Lorraine Bate Boerop, winner of the 2022 Stephanie McManus Award!
The Stephanie McManus Award, formerly known as the ACCP Annual Achievement Award was renamed in memory of long time ACCP member and former ACCP Chair who passed away in January 2016 after a courageous battle with cancer. Each year, this award recognizes an ACCP member’s outstanding efforts on behalf of the ACCP during the year.
CCIR and CISRO release new guidance on incentive management under the fair treatment of customers
The Incentive Management Guideline is a joint CCIR and CISRO guidance that provides additional details complementing the Conduct of Insurance Business and Fair Treatment of Customers guidance (“FTC Guidance”) released in September 2018.
Consultation Now Open for FSRA’s New 2022 Fee Rule
FSRA is proposing changes to the rule that governs the way it assesses and collects fees from the sectors it regulates. This is to align with FSRA’s updated Fee Rule vision and principles, such as fairness, consistency, and transparency. The Proposed Fee Rule will maintain low administrative burden, ensure the sectors are bearing their own costs, and help the regulated entities better understand how their fees are calculated.
Public Feedback Sought on Proposed Changes to Deferred Sales Charges Investors are Required to Pay
The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to better protect customers by proposing to eliminate deferred sales charges (DSC) on new segregated fund contracts, and restricting their use on existing ones. DSCs are sales charges that customers pay if they withdraw their own money from a segregated fund contract before the end of a time period specified in the contract.
ACCP Donates to Help Canadians In Need
Recently, the ACCP made a monetary donation to Food Banks Canada. With members across Canada, the ACCP is an organization of Canadian compliance professionals and a community of engaged and concerned citizens. We are proud to support a very special cause like Food Banks Canada, whose tireless work assisting our most vulnerable Canadians in their time of need is in extraordinary demand this holiday season.
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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