New self-regulatory organization to replace IIROC and MFDA by the end of 2022
The Canadian Securities Administrators (“CSA”) recently announced that the new self-regulatory organization (“New SRO”) that will consolidate the current functions of the Investment Industry Regulatory Organization of Canada (“IIROC”) and the Mutual Fund Dealers Association of Canada (“MFDA”) is expected to launch by the end of 2022.
The CSA announced its plan to create the New SRO earlier this year in CSA Position Paper 25-404 – New Self-Regulatory Organization Framework (the “Paper”), which we discussed in our previous blog.
The CSA will also create a new investor protection fund (“New IPF”) which will combine the existing Canadian Investor Protection Fund and the MFDA Investor Protection Corporation. The New IPF is also expected to be launched by the end of 2022.
The CSA formed a Special Joint Committee comprised of representatives from IIROC, the MFDA and the CSA to recruit and recommend a chief executive officer and board members of the New SRO. The recruitment process is underway and the CSA expects that the CEO and board of the New SRO will be announced in the second quarter of 2022.
IIROC and the MFDA have hired a global consulting firm to act as an integration manager and assist with designing the organizational structure of the New SRO.
The consolidation of the MFDA and IIROC’s existing rules into a harmonized set of rules of the New SRO is currently expected to take place after the launch of the New SRO and be subject to customary public comment periods.