Legal and Regulatory Structure

Question 1

What are the CSA ?

Answer 1

Canadian Securities Agencies

1. Protect investors from unfair, improper or fraudulent practices
2. Foster fair, efficient capital markets
3. Reduce risk of failure of market intermediaries

NOT A REGULATOR. They just apply the law.

Question 2

What are the main organisms ?

Answer 2

• OSC (protect investors)
• AMF (ensure the compliance of solvency standards, supervise activities, etc…)
• IOSCO (not a regulator)

Question 3

What does IIROC do ?

Answer 3

Enforces rules regarding:

1. Capital requirements
2. Business conduct
3. Market integrity rules

Regulates all investment dealers in canada and their employees.

Conducts marketing surveillance.

Question 4

What is the regulatory process ?

Answer 4

1. Government delegates its power to AMF
2. AMF has to to propose new rules

• IIROC adopts its own rules
• IIROCs new rules are subject to approval by AMF

Question 5

What was the libor crisis ?

Answer 5

• Libor is a reference interest rate at which banks loan to each other.
• has an effect on global loans
• many banks fix their interest rate
• some banks have gathered together to hoax the rate in their favour
• Consequences: banques no longer take corrective mesures, barcleys need to show conclusions for their new rate