Posted by Anjali Kaur on Jun 13, 2022

Securities Regulatory Bodies in Quebec

There are 2 securities regulatory bodies in Quebec; AML-Autorité de marchés financiers (AMF) and CSF-Chambre de la sécurité financière . Let’s understand their functions and power.

AML

Mutual fund dealers working in the province of Québec are required to be registered under the Autorité de marchés financiers (AMF), the securities regulator in Québec.

The AMF has further delegated the responsibility of ongoing regulatory compliance and continuing education requirements to the Chambre de la sécurité financière (CSF).

CSF

The CSF is the recognized self-regulatory organization (SRO) for Québec representatives dealing in investment funds, not under IIROC supervision. (In Québec, IIROC is the recognized SRO for investment dealers.)

CSF’s mission is to protect consumers by maintaining discipline and overseeing its members’ training and ethics, including dealing with representatives and financial planners.

Note: Quebec is the only province where registration for financial planning activities is required.

Role of CSF

The AMF empowers the CSF in Québec to:

  1. admit members
  2. investigate complaints
  3. enforce rules through a disciplinary process that can result in fines, suspension, or termination of membership

Investment Industry Regulatory Organization of Canada (IIROC)

The Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization for investment dealers.

IIROC’s principal activities include:

  1. protection of the investing public
  2. self-regulation
  3. liaison with provincial securities commissions
  4. public policy representation
  5. maintenance of orderly marketing and trading
  6. education
  7. publication of statistical information
  8. liaison with other financial institutions

IIROC’s main objective is to create a favorable environment for the investing public by encouraging high practice standards and enforcing regulatory compliance in its membership.

Office of the Superintendent of Financial Institutions (OSFI)

The Office of the Superintendent of Financial Institutions Canada (OSFI) is the primary supervisor and regulator of insurance companies, federally regulated deposit-taking institutions, and federally regulated private pension plans. OSFI does not regulate mutual funds and investment dealers.

OSFI’s mandate is to:

  1. protect the rights and interests of depositors, policyholders, pension plan members, and creditors of financial institutions
  2. contribute to public confidence in the Canadian financial system

Time to Check

  1. With which organization(s) must mutual fund dealers operating outside of Quebec register?

Mutual Fund Dealers Association (MFDA)

2. Which organization operates the Investor Protection Corporation (IPC)?

Mutual Fund Dealers Association (MFDA )

That’s all for now. You can check some of the previous post on IFIC exam:

  1. https://learnwithanjali.com/ific-exam/regulatory-environment/
  2. https://learnwithanjali.com/ific-exam/canadian-securities-administrators-csa/

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