Securities regulators launch unique self-regulatory body for the investment industry

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The CSA establish an integrated working committee to decide on the organizational structure of the new self-regulatory body and to oversee the incorporation of a new governance structure, the integration of functions and investor protection funds existing. The CSA may also include categories of registrations that they currently regulate in the new organization, depending on its findings in subsequent consultations.

Certain governance improvements will be implemented in the self-regulatory body to ensure that it serves the public interest, including:

  • Most of the members of the board of directors of the new organization and its chairman will be independent
  • The approval of all board members will be overseen
  • An investor advisory group will be set up
  • The new organization will need to seek the advice of the CSA on its annual priorities, business plan and budget
  • The new organization is also expected to seek approval for important publications

“The new self-regulatory framework is the result of extensive research, consultation and analysis that informed the creation of a framework designed to protect Canadian investors and build public confidence, welcome innovation, operate fair and efficient market conditions and navigate constantly changing industry conditions, ”said Morisset.

The CSA first announced that they would review the existing self-regulatory organization framework and formed a working group in December 2019. This working group concluded its informal consultations with many stakeholders in early 2020. and requested comment on a consultation document in June 2020, for which he accepted 67 letters of comment.

Those interested can learn more about the new organization by reading the CSA Position Statement 25-404 New Self-Regulatory Organization Framework, published August 3.

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