Chap 3: The Canadian Regulatory Framework Flashcards
We use the term _________ to describe the securities regulatory authority of each province,
whether it is a commission, registrar, administrator, or other official.
Administrator
The various regulators work together to coordinate and harmonize the regulation of the Canadian capital markets through the:
Canadian Securities Administrators (CSA)
The primary mandate of each securities regulator is to:
promote the integrity of financial markets and ensure
investor protection
The Ontario Securities Commission (OSC) mandate
“to protect investors from unfair,
improper or fraudulent practices and to foster fair and efficient capital markets and confidence in their integrity
Generally, the securities acts are based on three broad principles of regulation:
- Disclosure of facts that investors need to make reasoned investment decisions
- Registration of securities dealers, advisors, and other stated categories of registration
- Enforcement of securities laws and administrative policies
The underlying principle of securities regulation in Canada is ______, _______, and ___________
Full, True, and Plain Disclosure
To maintain an exchange listing that allows investors to engage in secondary trading, the issuer must meet the requirements of the applicable act or acts and of any exchange on which the securities are traded. These requirements, often referred to as ___________ ___________ ____________, vary in complexity among the different
exchange
Continuous disclosure requirements
Again, similar to prospectus requirements upon initial distribution, continuous disclosure requirements
are in place to help investors:
make informed decisions
The _________ are responsible for registering persons and companies that engage either in direct selling of securities to the public or in advising others on buying or selling securities.
Administrators
In all provinces, anyone who disagrees with a ruling of the administrator may:
appeal to the courts
Regulation of the securities industry in Canada occurs at three levels:
federal, provincial, and industry.
The U.S, has the SEC. In contrast Canada has:
no formal federal securities regulatory body.
Securities dealers are also subject to the federal Proceeds of Crime (Money Laundering) and Terrorism Financing Act (PCMLTFA), which is enforced by ____________________________ and the federal _____________________________.
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Personal Information Protection and Electronic Documents Act (PIPEDA).
What is IMETs and what do they do?
Integrated Market Enforcement Teams (IMETs)
Their goal is to strengthen the law enforcement community’s ability to detect, investigate, and deter capital markets fraud.
IMETs is a joint initiative of the RCMP and the federal Gov’t.
What is JSOT and what do they do?
Joint Serious Offences Team (JSOT) was launched by OSC to elevate efforts to target fraud and other serious misconduct. They investigate and prosecute serious violations of the law using provisions of the Securities Act (Ontario) and Criminal code.
JSOT is an enforcement partnership between the OSC, the RCMP Financial Crime Program, and the Ontario Provincial Police Anti-Rackets Branch.
Each _______ regulates securities activities within its borders through a securities commission or equivalent, and its own securities legislation.
province
As a result of the CSA’s efforts, securities markets are now governed by a number of largely harmonized ______________ and ___________________.
National Instruments (NI) and Multilateral Instruments (MI)
A National Instrument(NI) is an instrument that has been adopted by _______________, whereas an Multilateral Instrument(MI) has __________________________
All CSA Jurisdictions
Not been adopted by one or more CSA Jurisdictions.
The CSA is an umbrella organization whose objective is to __________, ___________, and ___________ the regulation of the Canadian capital markets.
improve, coordinate, and harmonize
The mission of the Canadian Securities Administrators (CSA) members is threefold:
- To protect investors from unfair, improper, or fraudulent practices
- To foster fair and efficient capital markets
- To reduce risks to the market’s integrity and to investor confidence in the markets.
The CSA uses three primary tools in delivering its mandate:
The Passport System
The Super memorandum of understanding (Super MOU)
Various electronic databases.
The ________ ________ is designed to reduce unnecessary duplication in the review of filings made in multiple jurisdictions and is based on the principles of mutual reliance.
Passport System
The ____________ is a memorandum of understanding about the oversight of the marketplaces. Like the Passport system, it provides for the oversight functions to be based on mutual reliance principles.
Super Memorandum of Understanding (Super MOU)
The CSA has developed four electronic databases to streamline regulatory processes and make info more easily available to the market:
- System for Electronic Document Analysis and Retrieval (SEDAR)
- System For Electronic Disclosure by Insiders (SEDI)
- National Registration Database(NRD)
- Cease Trade Orders (CTO) National Database
