Posted by Anjali Kaur on Jun 09, 2022

Regulatory Environment

This is banking exams related post, specifically for Canadian Banks. In Canada, there are many regulatory bodies in the Mutual Fund industry. Some are at the provincial level and most are at the national level. Let’s understand the regulatory environment of Canada.

What is a securities commission?

Each province and territory has a regulatory body which is known as a securities commission.

National Level

The following organizations all play a role in the regulation of the Mutual Funds industry:

  • Canadian Securities Administrators (CSA)
  • Mutual Fund Dealers Association (MFDA)
  • Ombudsman for Banking Services and Investments (OBSI)
  • Investment Industry Regulatory Organization of Canada (IIROC)
  • Office of the Superintendent of Financial Institutions Canada (OSFI)

How securities regulations are structured in Canada?

There are financial, provincial, and national bodies that structure the Securities Regulators in Canada.

  • Provincial securities
  • CSA
  • MFDA
  • AMF/CSF
  • IIROC
  • OBSI
  • OSFI

List of the regulatory bodies

Legislations that regulate the securities industries

1. Financial Services Regulatory Bodies

As a dealing representative(Dr.) you need to follow the rules of regulations to protect the interest of the investors.

2. For province and territory

These are regulated by the securities commission.

3. National Level

For regulating the MF industry at the national level we have:

CSA, OBSI, OSFI, MFDA, IIROC.

Mandate of SC

Each Securities Regulator sets its own standards for registration and has the power to grant or revoke registrations. Securities Regulators generally have a mandate to:

  • protect investors from unfair, improper, and fraudulent practices
  • promote fair and efficient capital markets
  • promote confidence in capital markets
  • reduce systemic risk

Role of Securities Regulator

  1. Establish a strict standard for disclosure of information before new securities are offered to the public.
  2. Review and approve MF and new issue prospects before selling in public.
  3. Register the company and individuals who sell and manage the MF portfolio.
  4. Enforce and govern the buying and selling of securities.
  5. Investigating investor complaints against companies and their employees.
  6. Discipline companies and individuals found to contravene regulations.

Role of Dealing Representative

  1. Register with the securities commission.
  2. Follow rules, regulations, and standards.

Thank You!

Revise and re-read if required. Don’t quit, keep grilling!

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