The Canadian Securities Administrators (CSA) announced on November 20 that as part of an effort to create efficiencies and reduce regulatory burden its members are considering delegating select registration functions to the Canadian Investment Regulatory Organization (CIRO). More specifically, certain regulators are considering delegating the routine applications of firms in the category of investment dealers and of mutual fund dealers (both firms and individuals) in certain jurisdictions.
The announcement indicated that for now, portfolio managers, investment fund managers, exempt market dealers, scholarship plan dealers and restricted dealers would continue to be registered and overseen by the CSA.
Simultaneously, the Ontario Securities Commission (OSC) announced that it intends to delegate these expanded registration functions to CIRO which, subject to regulatory approval and an appropriate oversight framework, will be effective very shortly in spring 2025. The OSC has already delegated the registration of individuals acting on behalf of investment dealers to CIRO. As a second phase, the OSC is considering delegating additional registration functions to CIRO, which is part of the OSC’s 2025-2026 draft statement of priorities. The Statement of Priorities indicated the OSC will examine the roles and interactions among Canadian regulatory authorities that oversee the capital markets to support optimal allocation of responsibilities and streamlined experiences for Ontario investors and businesses.
November 29, 2024