Canadian Regulatory Environment Flashcards
1
Q
Summary of regulators in Canada, how investors are protected, and what unethical code of conduct is
A
- The capital markets in Canada are regulated by provincial and territorial administrators who typically delegate
- authority to an SRO. The SRO enforces member conformity with securities legislation and prescribes their own rules of conduct. The Canadian Investment Regulatory Organization is Canada’s national SRO.
- Clients of securities and mutual fund dealer member firms are protected against loss in case of insolvency by the CIPF.
- Securities legislation is designed to protect investors by three means: (1) registration of securities dealers and advisors, (2) disclosure of facts necessary to make reasoned investment decisions, and (3) enforcement of laws and policies.
- Regulatory amendments, known as the Client Focused Reforms, came into force in 2021. The amendments were developed based on the concept that the interests of the client must come first. The reforms focused on KYC, KYP, suitability, conflicts of interest, and relationship disclosure.
- Unethical conduct is defined as any omission, conduct, or manner of doing business that, in the opinion of the disciplinary body, is not in the interest of the public or the exchange.
