The CSA recently published notices that recognize the New Self-Regulatory Organization of Canada (New SRO) and approve the Canadian Investor Protection Fund (CIPF) both as of January 1, 2023. As set out in our May 2022 bulletin, the CSA released CSA Staff Notice and Request for Comment 25-304 Application for Recognition of New Self-Regulatory Organization and CSA Staff Notice and Request for Comment 25-305 Application for Approval of the New Investor Protection Fund seeking comment on a number of operational aspects relating to the New SRO and investor protection fund. The press release announcing the notices also indicated that the Autorité des marches financiers intends to publish a transition plan for mutual fund dealers registered in the Province of Québec before the end of the year.
The New SRO will be temporarily known as the “New Self-Regulatory Organization of Canada” until a new name is determined at a later date, and as noted above the combined contingency fund will be known as the “Canadian Investor Protection Fund”. The interim rules for the New SRO provide for the continued jurisdiction over persons subject to the current IIROC and MFDA rules and contain numerous transitional provisions. With respect to the registration of firms and individuals, the powers of the New SRO remain the same as the current powers of IIROC unless changed by the regulators. In response to public comments on the May consultations, a number of clarifications were made, including that there would be no changes to the current delegation of registration authority to IIROC (which applies to investment dealers only).
Firms and individuals currently regulated by IIROC or the MFDA may wish to consult the FAQs relating to the Interim Rules and the Integration Cost Recovery Fee Model Guideline, now found on the New SRO website.
November 30, 2022