unit 1

Question 1

whats mfda

Answer 1

mutual funds dealers association of canada

Question 2

whats IIROC

Answer 2

investment industry regulatory organization of canada

Question 3

who does iiroc regulate?

Answer 3

ppl with securities licenses

Question 4

whats the diff between mfda and iiroc?

Answer 4

same thing but mfda is for mutual funds, and iiroc is for securities. (in 2023 they merged to become CIRO)

Question 5

whats the QC equivalent of MFDA? (Hint: En français)

Answer 5

CSF chambre de securite financiere, empowered by the AMF

Question 6

whos in charge of the protection of the investing public?

Answer 6

both IIROC and MFDA

Question 7

between IIROC and MFDA, which one does audits, and investigates complaints?

Answer 7

both!

Question 8

can IIROC and MFDA establish new rules or amend old ones?

Answer 8

yup they both can

Question 9

whats the CSA

Answer 9

canadian securities administrators

its a policy-making body composed of members from each securities regulator

(each province has its own securities regulator)

rules are created at the federal level and enforced at both federal and provincial levels

Rules in question: each jurisdiction’s Securities Act (?) and the National Instruments

CSA definition from the website:
The Canadian Securities Administrators (CSA) is an umbrella organization of Canada’s provincial and territorial securities regulators whose objective is to improve, coordinate and harmonize regulation of the Canadian capital markets

Question 10

whats systemic risk?

Answer 10

its when a single event triggers a domino effect that results in other interconnected stuff…

Question 11

who is politically exposed foreign person

Answer 11

military, judge etc and their immediate family members… see the list

Question 12

You’re doing great!

Answer 12

🦄⚡

Question 13

What is this referring to:

_______ is an umbrella organization of Canada’s provincial and territorial securities regulators whose objective is to improve, coordinate and harmonize regulation of the Canadian capital markets

Answer 13

CSA
Canadian Securities Administrators

Question 14

Does the CSA oversee the thirteen provincial/territorial securities regulators in Canada?

Answer 14

The CSA is not responsible for overseeing the operations of our members, the different securities regulators in Canada.

The thirteen members of the CSA are regulatory agencies mandated by their respective provincial or territorial governments to administer and enforce securities regulation in their province or territory through the administration of their securities act or law. Administration and enforcement of securities regulation is done on an individual basis by each province or territory.

(CSA website)

Question 15

Does the CSA oversee the thirteen provincial/territorial securities regulators in Canada?

Answer 15

The CSA is not responsible for overseeing the operations of our members, the different securities regulators in Canada.

The thirteen members of the CSA are regulatory agencies mandated by their respective provincial or territorial governments to administer and enforce securities regulation in their province or territory through the administration of their securities act or law. Administration and enforcement of securities regulation is done on an individual basis by each province or territory.

(CSA website)

Question 16

Can the CSA recommend an advisor?

Answer 16

The CSA cannot recommend an advisor but we can give you guidance on choosing an advisor who is suitable for you and your investment situation

(CSA website)

Question 17

How do I make a complaint with the CSA?

Answer 17

Aha! It’s a trick!

While the CSA co-ordinates initiatives on a cross-Canada basis, provincial or territorial regulators handle all complaints regarding securities violations in their respective jurisdictions. This provides a more direct and efficient service since each regulator is closer to its local investors and market participants. Enforcement of securities regulations is also done on an individual basis by each province or territory.

For more information or if you wish to make a complaint, contact your local securities regulator.

Question 18

How do I obtain my NRD number?

Answer 18

Contact the securities regulatory authority where you were registered (usually your province/territory of residence) to obtain your NRD number.

(CSA website)

Question 19

What’s a national instrument?

Answer 19

A National Instrument is an instrument that has been adopted in all thirteen Canadian provinces and territories.

Question 20

Are there other “instruments” that the CSA regulates?

Answer 20

Yup: other than national, there’s the multilater:

A Multilateral Instrument is an instrument that has been adopted in more than one, but not all Canadian provinces and territories

Question 21

What is the primary role of provincial securities commissions in Canada?

Answer 21

Provincial securities commissions are responsible for regulating the sale of securities within their respective provinces, ensuring compliance with laws and protecting investors.

Question 22

What does the Canadian Securities Administrators (CSA) do?

Answer 22

The Canadian Securities Administrators (CSA) work to harmonize securities regulations across all provinces and territories, ensuring consistency in the application of securities laws.

Question 23

What is the role of the Autorité des marchés financiers (AMF)?

Answer 23

The Autorité des marchés financiers (AMF) is a regulatory body like the MFDA, but it specifically oversees the financial markets, including securities, insurance, and mutual funds, in Quebec. The AMF operates independently of the MFDA, which covers most other provinces.

Question 24

What is the function of the Investment Industry Regulatory Organization of Canada (IIROC)?

Answer 24

the iiroc is like the mfda, but it’s for the investment industry, so it regulates the sale of investments and ensures compliance

The Investment Industry Regulatory Organization of Canada (IIROC) regulates the investment industry, including dealers and advisors, to ensure compliance with industry standards and protect investors. It’s similar to the MFDA but focuses on the broader investment market, which includes stocks and bonds, in addition to mutual funds.

Question 25

What is the role of the Ombudsman for Banking Services and Investments (OBSI)?

Answer 25

ts the body that addresses conflicts between clients and dealers (mutual funds and securities), like an impartial mediator

The Ombudsman for Banking Services and Investments (OBSI) acts as an impartial mediator to resolve disputes between clients and financial institutions, including mutual fund dealers and securities firms. It provides an independent, fair process for resolving conflicts.

Question 26

What is the role of the Office of the Superintendent of Financial Institutions (OSFI)?

Answer 26

The Office of the Superintendent of Financial Institutions (OSFI) regulates and supervises federal financial institutions, including banks, insurance companies, and pension plans, ensuring their stability and compliance with regulations.

Question 27

Can you list any of the key legislation that regulates the securities industry in Canada?

Answer 27

Securities Act: Governs the regulation of securities and the protection of investors in each province.

PIPEDA (Personal Information Protection and Electronic Documents Act): Regulates how private sector organizations collect, use, and disclose personal information.

FTMLTA (Financial Transactions and Reports Analysis Centre of Canada Act): This one is related to anti-money laundering and anti-terrorist financing regulations, although it may not directly focus on securities regulation, it impacts the industry by ensuring that financial institutions follow strict reporting requirements.

The Canadian Securities Act (which is still under discussion for implementation) – Intended to create a national securities regulator, though most regulation remains provincial.

The Mutual Fund Dealers Association (MFDA) Rulebook – While not legislation per se, it establishes rules and requirements for mutual fund dealers under the MFDA’s jurisdiction.

The Income Tax Act – While primarily about taxation, it impacts the securities industry by regulating tax treatment for investments like mutual funds.

The Financial Consumer Agency of Canada Act – Oversees the consumer protection framework for the financial sector, including some aspects of mutual funds.

> > These pieces of legislation work together with the provincial and federal bodies to regulate and monitor the industry comprehensively.