SROs: IIROC (Investment Industry Regulatory Org of Canada): National Self Reg Org. IROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces. Mutual Fund Dealers of Canada (MFDA) national self-regulatory organization (SRO) for the distribution side of the Canadian mutual fund industry. The MFDA is structured as a not-for-profit corporation and its Members are mutual fund dealers that are licensed with provincial securities commissions. Prov sec com delegate various roles to these entities. Aka Recognized Entities. A New Regime? Cooperative Capital Markets Cooperative Capital Markets Regulator Initiative: Feds/ON/BC/SK/NB/PEI. Canada only country w/o national regulator, but Cdn companies not valued enough b/c our fragmented system seems like less enforcement, more vulnerable to fraud (relationship btw com and RCMP). These five governments released a Memorandum of Agreement (MOA) on September 8, 2014 setting out the terms and conditions to establish the Cooperative System. They also released draft uniform provincial capital markets legislation and complementary federal legislation for public comment. Open invitation remains for others to join. Systemic Risk Risks that occasion a domino effect whereby the risk of default by one market participant will impact ability of other to fulfill their legal obligations, setting off a chain of negative economic consequences that pervade entire financial system. It can be a function of 3 criteria to help identify the systemic importance of an institution, market or instrument: size (volume of financial services provided by individual component of the fin system) substitutionality (extent to which other components can provide that service in event of failure interconnectedness (linkages w/ other components of that system) Reference Re Securities Act To have a federal securities regulator would be unconstitutional under the federal government’s general trade & commerce power (s. 91(2) of Constitution Act), but they could have jurisdiction over “mgmt of systemic risk” + “international data collection” (these are national in scope). Feds cannot have power over day to day affairs of sec, that is under prov property & civil rights 92(13). The Cooperative Capital Markets Regulatory System See class handouts The Prospectus Process NI 41-101 General Prospectus Requirements & NI 41-101F1 Required Info
SROs: IIROC (Investment Industry Regulatory Org of Canada): National Self Reg Org. IROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces. Mutual Fund Dealers of Canada (MFDA) national self-regulatory organization (SRO) for the distribution side of the Canadian mutual fund industry. The MFDA is structured as a not-for-profit corporation and its Members are mutual fund dealers that are licensed with provincial securities commissions. Prov sec com delegate various roles to these entities. Aka Recognized Entities. A New Regime? Cooperative Capital Markets Cooperative Capital Markets Regulator Initiative: Feds/ON/BC/SK/NB/PEI. Canada only country w/o national regulator, but Cdn companies not valued enough b/c our fragmented system seems like less enforcement, more vulnerable to fraud (relationship btw com and RCMP). These five governments released a Memorandum of Agreement (MOA) on September 8, 2014 setting out the terms and conditions to establish the Cooperative System. They also released draft uniform provincial capital markets legislation and complementary federal legislation for public comment. Open invitation remains for others to join. Systemic Risk Risks that occasion a domino effect whereby the risk of default by one market participant will impact ability of other to fulfill their legal obligations, setting off a chain of negative economic consequences that pervade entire financial system. It can be a function of 3 criteria to help identify the systemic importance of an institution, market or instrument: size (volume of financial services provided by individual component of the fin system) substitutionality (extent to which other components can provide that service in event of failure interconnectedness (linkages w/ other components of that system) Reference Re Securities Act To have a federal securities regulator would be unconstitutional under the federal government’s general trade & commerce power (s. 91(2) of Constitution Act), but they could have jurisdiction over “mgmt of systemic risk” + “international data collection” (these are national in scope). Feds cannot have power over day to day affairs of sec, that is under prov property & civil rights 92(13). The Cooperative Capital Markets Regulatory System See class handouts The Prospectus Process NI 41-101 General Prospectus Requirements & NI 41-101F1 Required Info