On August 10, the Canadian Securities Administrators (CSA) announced that it will be reviewing exchange-traded funds (ETFs) in Canada, noting that ETFs make up almost 15% of the assets invested in publicly offered investment funds nationwide. The CSA will examine if current rules are still appropriate given the unique features of ETFs, including the availability of secondary market trading and mechanisms used to maintain market prices close to the underlying portfolio values.

In its assessment, the CSA will consider in particular whether practices published by the International Organization of Securities Commissions (IOSCO) relating to ETFs earlier in the year are appropriate for the Canadian market. Future consultations or regulatory changes may thus be on the horizon, which we and our colleagues at BLG will follow closely.

August 31, 2023