Volume 1 Chapter 3 - The Canadian Regulatory Environment Flashcards
what is the primary goal of regulators?
Investor protection
Who is responcible to create legislation for the securities industries
Each province and territory
What is the regulatory body in quebec
Authorite des marches financiers - which regulates both the securities business and QC financial sector
Outside of QC, who regulates the financial sector
OSFI
Describe the Canadian Securities Administrators
is an umbrella org of Canadas ten provincial and three territorial securities regulators designed to improve, coordinate and garmonize regulation of the Canadian Capital markets. Mission - develop a national regulatory system that fosters fair, efficient, and vibrant capital markets in which investors are protected from unfair, improper, and fraudulent practices.
Describe Self-Gulatory Organizations
Are private industry organizations to which the provincial regulatory bodies have granted the priblege of regulating their own members. Enforce their members conformity with securities legislation. Have power to make own rules of conduct and financial requirements.
Delegated regulatory functions by thte provinces reg bodies.
Who monitors the SRO
the CSA
Do SRO regulations supercede provincial
No - they are in addition to provincial regulations
If there are two rulings on an SRO and CSA which rule must apply
The most stringent rule of the two applies
Suggest two SROs
- Investment Industry Regulatory Organization of Canada (IIROC)
- Mutual Funds Dealers Association (MFDA)
Describe the functions of IIROC
oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
Mandate - Set high quality regulatory and investment industry standards, protect investors, and strengthen the market integrity while maintaining effiecient and competitive capital markets
Suggest 5 roles of IIROC
- FInancial Compliance
- Business conduct compliance
- Registration
- Enforecement
- Market Surveillance
Describe Role 1. Financial Compliance
Dealer members are monitored to ensure that they have enough capital to carry out their operations
Describe role 2. Business conduct compliance
Dealer members are monitored to ensure that policies and procedures are in place to properly supervise the handling of their client accounts
Describe role 3. Registration
IIROC oversees professional standards and educational programs designed to maintain the competence of industry employees