What is the difference between iiroc and mfda

The umbrella organization for Canada's securities regulators says it plans to merge the regulatory bodies that oversee investment dealers and mutual fund dealers into one new organization, a move praised by both watchdog groups. The roles of both regulatory bodies have increasingly overlapped in recent years, prompting calls to review the regulatory framework. Kriegler said the new organization is important for the financial future of Canadians.

Some of the key solutions that have been proposed include:. The announced merger represents a significant shift in the regulation of the investment industry.

While there will likely be some speed bumps as the implementation process unfolds, the CSA's announcement represents a welcome change to the current regulatory regime. It is expected that the New SRO will allow for greater innovation, efficiencies and cost savings in the investment industry. This publication is a general discussion of certain legal and related developments and should not be relied upon as legal advice.

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Authors Gillian B. But an increasing number of wealth managers have customers that purchase both mutual funds and individual securities, leading to complexities and redundancies when it comes to regulating their businesses as a whole.

Regulatory uncertainty can make trading stock tokens risky, experts say. Both organizations have also faced criticism for having weak corporate-governance structures stacked with former industry participants that tend to favour their own interests rather than that of investors. As SROs, both are able to fine and sanction their members.

The positions of chief executive officer and chair of the new organization will be occupied by two different individuals. The first phase will begin immediately and will focus on designing a corporate structure, as well as determining how involved the CSA should be in overall governance and oversight of the new entity.