The Canadian Securities Administrators (CSA) has recognised the New Self-Regulatory Organisation of Canada (New SRO) and approved the new Canadian Investor Protection Fund (CIPF) in an effort to create a single, self-regulatory organisation for investment and mutual fund dealers and their representatives and an integrated investor protection fund.
New SRO is an amalgamation of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). It will be given a permanent name following stakeholder consultation and member approval.
The self-regulatory organisation aims to deliver value to investors, foster an innovative and competitive industry and make it easier for dealers and advisors to serve Canadian investors. It also aims to simplify regulatory complexities and enable single-platform dealers to expand their business models.
The new CIPF is a merger of the former Canadian Investor Protection Fund and the MFDA Investor Protection Fund. It will offer protection to New SRO members, working with the CSA, New SRO and other relevant stakeholders.
Toni Ferrari, president and CEO of the new CIPF, says: “The enhanced regulatory framework put in place by the CSA, including an amalgamated and independent protection fund, is an important step in the evolution of investor protection in Canada. CIPF will continue to communicate and engage with investors and member firms to become a valuable partner in investor protection.”
Andrew Kriegler, CEO of New SRO, comments: “We know that investors want flexibility in the way they consume financial services and financial advice. With the regulatory changes that will accompany New SRO, it will be easier for the industry to give them that flexibility and to improve their access to new products and services.”
