Ch.3- The canadian regulatory environment Flashcards
OFSI Office of the superintendent of financial institutions
- regulate and supervise- deposit taking institutions, insurance companies
- does not regulate Canadian securities industry
regulate/supervise:
- Deposit taking institutions
- insurance companies
- foreign bank representative offices chartered, licensed, register by fed. gov
- federally regulated pension plans
CDIC canadian deposit Insurnace corp
- Deposit insurance
- eligible deposits up to $100,000 per depositor in each member institution
-insures:
~savings and chequeing
~GIC + other term deposits under 5 yrs
~Money orders, certified chq, travellers chq, bank drafts
~accts that hold reaalty taxes on mortgaged properties
If deposits held in more than one of CDIC deposit ins categories: to have more than $100,00 covergae: ~in 1 name ~jointly in more than 1 name ~in trust acct ~RRSP ~RRIF ~Mortgage tax acct
Who are regulators
- federal regulators
- Provincial regulators
- Self regulatory organizations
Federal regulators
OFSI
CDIC
Provincial regulators
-Regulate securities business.
-CSA Canadian Securities Administrators: 13 securities regulators (prov/terr) of canada together
CSA: forum to coordinate and harmonize regulation of cdn capital markets
Self regulatory Organizations
-Private industry organizations that have been regulating own member by provincial regulatory bodies
-power to prescribe own rules of conduct +
financial requirements
-SRO regulations apply in addition to provincial regulation
~ if rules differ- use more stringent rule
-SRO’s incl IIROC and MFDA
IIROC- Investment industry regulatory organization of cda
-Oversees all investment dealers and trading activity on debt and equity market in cda
MFDA
Mutual fund industry self regulatory
Investor protection funds
protection against loss due to financial failure of firm in self regulatory system
Canadian Investor protection Fund (CIFP)
• Primary role- investor protection
Second- overseeing self-regulatory system
CIPF Joint accounts
assumed to be equally split in value between each owner
CIPF Separate account
accts disclosed in records that are treated as if they belonged to separate customer- each entitled to max coverage
○ Each separate account in same capacity (i.e. 2 RRSP) are combined to constitute single separate account.
- Covered up to max $1,000,000
- Trusts
JOINT/GENERAL ACCOUNTS
assumed to be equally split in value between each owner
SEPERATE ACCOUNT
accts disclosed in records that are treated as if they belonged to separate customer- each entitled to max coverage
○ Each separate account in same capacity (i.e. 2 RRSP) are combined to constitute single separate account.
○ Example of separate accounts: § RRSP, RRIF, LIF (LIRA LIRSP), LRIF § RESP's § Partnerships § Trusts
Mutual Fund dealers association Investor protection Corporation (MFDA IPC)
protection for eligible customers of insolvent MFDA member firms
• Customer accounts covered either as part of general account or as separate account
Each acct eleigible for up to $1,000,000
