From the Regulators

Regulatory deadlines and updates for financial professionals. New this update: Competition Bureau eyes fintech and much more.

By IE Staff |

Updated to April 21.

Investment Executive editors have prepared this listing of upcoming regulatory deadlines of interest to financial advisors, with links to further information. Deadlines are listed by date and grouped by month, based on the calendar year.

A changing selection of ongoing initiatives that may be of interest to advisors appears at the bottom of the calendar list, under the headings Tax and Bring Forward.

The calendar will be updated weekly each Monday, with additions made in the current week flagged with the notation, New or Updated. Recent, past deadlines are retained for one month.

New entries can be found in May, Further Ahead and Bring Forward.

Click here to review 2016's Compliance Calendar for Advisors.

We welcome submissions to the calendar. Please email us at: pchisholm@investmentexecutive.com.












 

 

 

 

DEADLINES

March

March AMF

Binary options ban proposed
The Autorité des marchés financiers is proposing draft rules that would prohibit the offering of binary options to investors in Quebec. Regulators have warned investors repeatedly against trading in these instruments, which are often likened more to gambling than investing, and typically involve dealing with unregistered, offshore firms. The proposals are out for a 30-day comment period.

1 BoC

Foreign exchange rate data
The Bank of Canada is planning changes to the foreign exchange rate data that it publishes. Changes take effect.

13 FSB

Risk guidance for central counterparties
The Financial Stability Board published draft guidance to prevent central counterparties, a critical part of financial market infrastructure, from developing into a source of systemic risk. Comments on the draft close.

17 ESAs

Consultation on risks and benefits of big data
The Joint Committee of the European Supervisory Authorities launched a public consultation about the potential benefits and risks of big data for consumers and financial firms to determine whether any further regulatory or supervisory actions may be needed. Comments on the consultation close.

22 IIROC

Shift to principles-based approach proposed
The Investment Industry Regulatory Organization of Canada proposed a set of rule amendments to introduce a principles-based approach, which would give firms more flexibility to develop policies and procedures for trading supervision. Comments close.

30

CSA

New system for reviewing trade data for market misconduct
Securities regulators are developing a new system for collecting and analyzing market to beef up their ability to root out misconduct — such as illegal insider trading and market manipulation. Request for proposals have been issued to develop new systems. Comments on new proposals close at the end of March, with an information session for bidders being held Feb. 21.

31 FCA

U.K. seeks comment on changes to compensation funding
The U.K. Financial Conduct Authority proposed changes to its Financial Services Compensation Scheme (FSCS), a financial backstop for customers of financial services firms that suffer harm due to investment industry misconduct. Comments due.

     

 

April

April 4

CSA

New rules for OTC derivatives market
The Canadian Securities Administrators has adopted two new sets of rules to bolster the stability of over-the-counter derivatives markets. The CSA's rule requiring mandatory central counterparty clearing of certain derivatives will take effect April 4, while a rule regarding customer clearing and collateral will come into force July 3.

10 CSA

Cut to trading fee cap on domestic securities
The Canadian Securities Administrators is reducing the cap on active trading fees for securities that are only traded in Canada to 0.017¢ a share from 0.3¢ a share. Meanwhile, the cap on interlisted stocks will remain at 0.3¢ a share and the cap for securities trading at below $1 a share will remain at 0.04¢ a share. The new caps come into effect April 10, with firms given until May 15 to make the changes.

28 OSC

New panel members sought
The Ontario Securities Commission is seeking new members for its independent Investor Advisory Panel. The members of the panel are paid for their service and receive two-year appointments. Deadline for applications.

     

 

May

2
New
Competion
Bureau

Comment on 2017-2018 priorities requested
Continuing its efforts to foster innovation in Canada, the Competition Bureau says it will issue a report on fintech regulation this fall, and plans to publish a white paper on issues related to big data in the year ahead. Those plans are outlined in the independent law enforcement agency's draft 2017-18 Annual Plan: Competition is Key. Comments on the plan close.

5
New
AMF

New committee to advise on investment funds
The Autorité des marchés financiers is launching a new industry advisory committee focused on issues facing the investment fund sector. The AMF is seeking representatives from product manufacturers and distributors, along with investor advocates, to serve on the new committee. Deadline for applications.

5
 

FINRA

Enhancing engagement, comments sought by U.S. SRO
The Financial Industry Regulatory Authority issued a special notice in which it seeks comment on how it could enhance its engagement with broker dealers and other stakeholders.

8

FCA

U.K. launches consultation on illiquid assets in mutual funds
The U.K.'s Financial Conduct Authority seeks feedback on a discussion paper that reviews retail investors gaining exposure to illiquid assets, such as real estate and infrastructure, through open-ended funds, such as mutual funds. Comments close.

11 FSB

Comment sought on proposals to evaluate G20 reforms
The Financial Stability Board published for consultation the main elements of a proposed framework that will help policymakers analyze whether G20 financial regulatory reforms are working as intended, and to identify any major unintended consequences. Comments close.

12
New
AMF

Feedback sought on banning embedded commissions
The Autorité des marchés financiers will host an industry consultation session on banning embedded commissions. The AMF's investment funds branch will host the session at its Montreal office on May 12.

12

IIROC

Comments sought on latest rulebook

The Investment Industry Regulatory Organization of Canada is seeking comments on the latest edition of its proposed plain language rulebook for a second round of comments. The project dates back to 2008, with the first complete version issued last year. Comments due.

14 FCA

Comments sought on effectiveness of capital markets
The U.K. Financial Conduct Authority published a discussion paper to examine whether the capital markets are working well for companies that need financing and the investors who play in those markets. Comments due.

30 FINRA

Comment sought on capital-raising rules
The U.S. Financial Industry Regulatory Authority requested comment on its rules governing the participation of brokerage firms in capital raising. Comments close.

     

 

June

June OSFI

New guidance on operational risk released
The Office of the Superintendent of Financial Institutions released the final version of its new, consolidated guidance outlining its expectations for federally regulated financial services institutions, such as banks and life insurers, in managing their various forms of operational risk, giving banks a year to comply with the new requirements.

1

FCA IPO information reforms proposed
The U.K. Financial Conduct Authority proposed measures to reform the availability of information during the equity initial public offering process. The measures are intended to assist investors by enhancing the availability of independent research. Comments on the proposals are due.
 
 
9 DOL U.S. delays fiduciary rule for 60 days
The U.S. Department of Labor delayed its fiduciary rule for 60 days, and invited further comments on the initiative. The rule would require retirement advice to be in the best interest of investors, among other things. The applicability dates of the fiduciary rule and related exemptions were extended from April 10 to June 9.
 
10 DOL

Fiduciary rule relayed
The U.S. Department of Labor will delay implementation for certain aspects of the planned U.S. fiduciary rule for retirement advice, which were slated to take effect on April 10, by 60 days. The move follows a memorandum from U.S. President Donald Trump directing the DOL to re-examine the rule to ensure that it does not restrict access to retirement information and financial advice.

     

 

July

1 IIROC

New fee model for debt processing
The Investment Industry Regulatory Organization of Canada announced that its fee model as debt information processor has received regulatory approval. Under the new model, fees for government securities dealers, which are authorized to buy government securities directly from the Bank of Canada, apply starting April 1. Fees for other dealers will begin July 1. IIROC will issue its first invoices under the new model in July.

3 OSFI

New rules for OTC derivatives market
The Canadian Securities Administrators has adopted two new sets of rules to bolster the stability of over-the-counter derivatives markets. The CSA's rule requiring mandatory central counterparty clearing of certain derivatives will take effect April 4, while a rule regarding customer clearing and collateral will come into force July 3.

7 CSA

New conduct rules for OTC derivatives markets
The Canadian Securities Administrators proposed new conduct rules for derivatives dealers and advisors. The new rules would introduce a comprehensive regulatory regime for derivatives market participants by establishing requirements similar to existing conduct rules for dealers in equities markets. Comments close.

7

CSA

Regulatory burden to be reduced
The Canadian Securities Administrators launched the first phase of an initiative to reduce the regulatory burden on securities markets. The will launch separate consultations on the investment fund business and, down the road, will look at registrants, such as dealers and fund managers. Comments on the initial consultation paper close.

     

 

September

1

OSFI

Margin requirement deadline extended
The Office of the Superintendent of Financial Institutions is giving firms more time to comply with new margin requirements for non-centrally cleared derivatives, extending the deadline to Sept. 1 from March 1. OSFI is following the lead that foreign regulators have taken in other major jurisdictions to "avoid causing substantial disruptions to the derivatives market."

1 CSA

Standard deviation to be used for fund risk
The Canadian Securities Administrators finalized measures that will require fund managers to start using a standardized methodology for determining the investment risk level reported in the Fund Facts and the newly introduced ETF Facts disclosure documents given to investors. The new requirements would come into effect on March 8, 2017. Firms must begin using the method by Sept. 1, 2017.

5 SEC

T+2 adopted
The U.S. Securities and Exchange Commission adopted an amendment to shorten the settlement cycle for most broker-dealer transactions from three business days after the trade date (T+3) to two business days after the trade date (T+2). New rules take effect.

5 CSA Transition to T+2 settlement cycle
The securities industry should be preparing for the transition to shorter settlement cycles in the fall of 2017, the Canadian Securities Administrators says in a staff notice. The CSA sent a letter to Canadian firms regarding the planned move to T + 2 (trade date plus two days) settlement. The letter aims to alert firms to the plan to adopt T+2 settlement on Sept. 5, 2017, on the same timeline at the U.S. capital markets.
 
     

 

Further Ahead

Dec. 15 FASB

Accounting standards revised
The U.S.-based Financial Accounting Standards Board issued an accounting standards update to provide investors with more useful information. New standards in force.

Jan.
2018

EC

New rules for commodities markets
The European Commission announced measures to strengthen the regulation of commodities markets and curtail price speculation. Rules take effect.

Oct. 31
2018
New
 

OSFI

New disclosure requirements for big banks
The Office of the Superintendent of Financial Institutions issued the final version of guidance for the big banks to adopt new disclosure requirements under the revised global capital regime known as Basel III. The revised guidance establishes new disclosure obligations around credit risk, counterparty credit risk and securitization activities.

Jan.1
2019
OSFI Basel 111 deadline extended
The Office of the Superintendent of Financial Institutions is giving Canadian banks an extra year to comply with new liquidity requirements under the new capital adequacy rules known as Basel III.
 
     

 

Tax

Late March CRA

Access to tax accrual working papers
The Federal Court of Appeal ruled in late March that the Minister of National Revenue does not have "general and unrestricted" access to taxpayer documents that identify uncertain tax positions.

Mar. 27 CRA

International tax compliance guidance
The Canada Revenue Agency posted updated guidance to streamline and harmonize, where possible, compliance requirements associated with both the Common Reporting Standard and the U.S. Foreign Account Tax Compliance Act.

Mar. 21 Tax Court

New Housing Rebate, proving residence
Another recent decision from the Tax Court of Canada indicates that small details may make a big difference when it comes to claiming tax breaks for a primary residence, in this case the New Housing Rebate.

Mar. 13 CRA

Scrutiny of homeowner-based tax benefits rising
The trend toward greater official scrutiny of tax breaks designed to benefit homebuyers means financial advisors may want to caution clients who purchase residential properties about the conditions for claiming these breaks — and the new importance of supporting documentation.

Mar. 3 BCSC

Application for rectification dismissed
Thorsteinssons law firm notes that a recent decision from the Supreme Court of British Columbia has rendered a decision that applies the recent ruling of the Supreme Court of Canada in the Fairmont Hotels case, which has altered some of the rules in applications for rectification.

     

 

Bring Forward

A changing selection of ongoing initiatives which may be of interest to advisors.

Apr. 20 JCESA

Protracted period of low profitability expected
A report from the Joint Committee of the European Supervisory Authorities — which includes the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority — points to a "protracted period of low profitability" for banks and difficulties for insurers.

Apr. 20 OSC

New procedural rules proposed
The Ontario Securities Commission is proposing changes to the rules that guide how disciplinary proceedings and other hearings are carried out.

Apr. 19 IIAC

Enforcement activity rose last year
The Investment Industry Regulatory Organization of Canada's annual report shows that enforcement ramped up overall in 2016. However there was a decline in the number of cases against firms during the year.

Apr. 13 FCA

Advertising and investor choices
Advertising that encourages consumers to act on emotion rather than logic can lead to poor decisions and unsuitable product purchases, suggests a new paper from the behavioural economics and data science unit at the U.K.'s Financial Conduct Authority.

Apr. 12 IAP

Paper calls for best interest, other reforms
A new report says 2017 "promises to be a monumental year" for enhancing investor protection, the report from the Investor Advisory Panel suggests, provided that regulators follow through and, "introduce a best interest standard and eliminate conflicted compensation."

Apr. 10 FINRA

Victim vulnerability and U.S. regulatory sanctions
The U.S. Financial Industry Regulatory Authority revised the sanctions guidelines that the National Adjudicatory Council (NAC), its appeal tribunal, uses to include "a new principal consideration that contemplates coverage for financial exploitation of vulnerable individuals or individuals with diminished capacity."

Apr. 10 IIAC

Fighting financial crimes reforms called for
Federal authorities should step up co-operation with investment industry regulators, enhance disclosure to the industry and allow greater reliance on facial recognition technology, according to the Investment Industry Association of Canada in a letter to the federal Department of Finance Canada as part of a parliamentary review of the anti-money laundering legislation.

Apr. 6 CSA

Greater co-operation on cybersecurity recommended
Canada's securities industry needs to develop more formal mechanisms for sharing information in the event of a disruptive cyber attack, the Canadian Securities Administrators suggest in a new report. It details the results of a cybersecurity roundtable that regulators hosted with a cross-section of investment industry firms and organizations on Feb. 2.

Apr. 6 IIROC

Members to be banned as POA's, executors, trustees
Investment dealer personnel will be largely banned from serving as power of attorney, trustees, or executors for clients under new rules the Investment Industry Regulatory Organization of Canada is introducing later this year.

Apr. 5 ESMA

Pending market structure changes clarified
The European Securities and Markets Authority published new guidance on its forthcoming new regulatory regime, known as the Markets in Financial Instruments Directive (MiFID II). The guidance relates to market data, transparency, and the introduction of new types of trading venues (known as organized trading facilities (OTFs)) for certain products.

Mar. 31 IOSCO

Revised co-operation model for global regulators
The International Organization of Securities Commissions announced that global securities regulators have agreed to a new deal for sharing information and co-operating on cross-border enforcement.

Mar. 31 Ontario

Support for new rules for planners and advisors
Ontario Finance Minister Charles Sousa pledged government support for reforms recommended in a recently published expert report on the regulation of financial planning and advice, but stopped short of committing to its call for a statutory best interest duty.

Mar. 31 Ontario

SRO's to receive new powers to pursue advisors
Ontario Finance Minister Charles Sousa announced that the Ontario government will introduce legislation to grant self-regulatory organizations the power to enforce sanctions against misbehaving advisors through the courts.

Mar. 30 FINRA

New ways to protect seniors from fraud
The U.S. Financial Industry Regulatory Authority received approval for two new rules that should help stop con artists who prey on the elderly before the damage is done. FINRA member firms will have new authority as of Feb. 5, 2018 to take two simple, but key, steps to protect senior investors before a transfer of their funds takes place.

Mar. 29 OSC

Embracing behavioural economics
The Ontario Securities Commission's Investor Office published a report that reviews the work of economists who study how people actually behave in the real world vs the classic economists' view of people as strictly rational decision makers. The report concludes that behavioural insights have a role to play in producing better regulatory policy and indicates that the OSC plans to do more work in this area in the year ahead.

Mar. 28 BCBS

Banks falling short on compliance with risk reforms
The world's big banks are falling short in adopting post-crisis reforms to risk management practices, according to a report published by the Basel Committee on Banking Supervision. The principles, published in 2013, were supposed to be fully implemented at global systemically-important banks by January 2016.

Mar. 27

IIF

RegTech could reduce compliance costs
A new report from the International Institute of Finance calls for reforms to allow the financial services sector to fully exploit regulatory technology, or "regtech," to help curb compliance costs. The report refers to new technologies such as machine learning, robotics, biometrics and distributed ledger technology to improve compliance with anti-money laundering anti-fraud requirements for financial services firms.

Mar. 24 ESMA

Consumer complaints rise in Europe
The number of complaints to regulators in the first half of 2016 by financial consumers has increased, the European Securities and Markets Authority announced. The number of complaints jumped to more than 7,000 in the first half of 2016, compared with 5,152 for the same period in 2015.

Mar. 23 OSC

Priorities statement for fiscal 2018
Retail investor issues remain at the top of the Ontario Securities Commission's list for the next fiscal year, ending March 31, 2018, including embedded commissions in the mutual fund industry, a possible best interest standard and other proposed reforms to client/advisor relationships. A renewed effort to reduce the regulatory burden is also coming, the statement says.

Mar. 21 CSA

Disclosure on climate change for issuers
The Canadian Securities Administrators said it will review disclosure from large, public companies on the risks and financial impacts of climate change. The review will focus on both issuers' existing mandatory continuous disclosure filings, and voluntary reporting in 2016.

Mar. 17 ONT

Report calls for key changes in advisor credentials, best interests
The Ontario government's Expert Committee to Consider Financial Advisory and Financial Planning Policy Alternatives recommended a series of new standards apparently designed to bring financial advisors and financial planners under a strict new regulatory scheme that would include a statutory best interests duty, overhauling the use of titles and the creation of a new regulatory body.

Mar. 16 OBSI

Number of investor complaints rises
The volume of complaints filed against investment services firms and banks rose in 2016, according to the latest annual report from the Ombudsman for Banking Services and Investment. The ombudservice's annual report reveals that the total number of cases it opened in 2016 jumped to 640 from 571 in 2015, marking a 12% increase.

Mar. 16 CSA

Investment entities disclosure review
A recent review of investment entities, an expanding group of public issuers, revealed many areas in which disclosure practices could be improved, according to the Canadian Securities Administrators.

Mar. 15

CRTC/
CASL

Decision offers guidance on anti-spam compliance
A recent enforcement decision from the Canadian Radio-television and Telecommunications Commission dealing with Canada's anti-spam legislation may be helpful to financial advisors and their small business owner clients who send marketing email and find themselves in contravention of the act.

Mar. 15 FCAC

Review of bank's business practices in April
The Financial Consumer Agency of Canada is conducting reviews into the banking industry's business practices in April. The consumer watchdog routinely performs reviews of the practices of federally regulated financial institutions to investigate specific compliance issues.

Mar. 14 IOSCO

New regional hub for securities regulators
The International Organization of Securities Commissions launched its first regional-capacity building hub in Kuala Lumpur, Malaysia, which will focus on the needs of its Asia-Pacific members. The new hub is designed to meet requests from IOSCO members for more regulatory capacity — which now includes seminars, staff secondments and an online toolkit on risk-based supervision and enforcement — in growth and emerging markets.

Mar. 13 LCO

Power of Attorney, proposed changes
The Law Commission of Ontario has submitted proposals for assessing capacity, regulating guardianship and structuring powers of attorney. The 58 recommendations amount to proposals for a sweeping reform of the way vulnerable people are assisted in areas that range from finances to health care.

Mar. 10 IIROC More stringent hiring practices having results
A new report from the Investment Industry Regulatory Organization of Canada suggests dealers are toughening their hiring practices. The report details the exemption requests that IIROC has handled over the past year, including applications for exemptions from trading rules, certain dealer rules and from proficiency requirements.
 
Mar. 9 CSA

Reckless use of social media harming investors
The Canadian Securities Administrators outlined the results of a regulatory review that looked at public companies' use of social media. The review disclosed that investors may have suffered as a result of major stock price moves caused by disclosure made through social media, including early, selective, or misleading, disclosure.

Mar. 8 FINRA

New professional proficiency test proposals
The U.S. Financial Industry Regulatory Authority filed a proposal with the U.S. Securities and Exchange Commission that sets out plans to overhaul the industry's competency exams. The proposed changes would eliminate duplicative testing and make it easier for participants to demonstrate and maintain their qualifications.

Mar. 8 OSC

Securities laws may apply to blockchain
The Ontario Securities Commission is cautioning that businesses that use distributed ledger technology (DLT), such as blockchain, need to consider whether they're subject to securities law requirements. The OSC says that certain uses of blockchain technology may trigger registration requirements, or the obligation to file a prospectus.

Mar. 6 OSC

OSC reports on RegHackTO results
The Ontario Securities Commission foresees a bigger role for technology in the regulator's toolkit, according to a new report. The OSC's report was put out along with a video detailing the results of RegHackTO, which the OSC held this past November in Toronto.

Mar. 3 NASAA Investors, seniors at top of legislative agenda
The North American Securities Administrators Association is putting retail investors, and seniors in particular, at the top of its legislative agenda. Its recommendations to Congress include establishing a fiduciary standard for broker-dealers.
 
Mar. 2 Advocis
 
Calls for opposition to embedded commission ban
The Financial Advisors' Association of Canada called on advisors and clients to contact their provincial members of Parliament to oppose a possible ban on embedded commissions. In January, the Canadian Securities Administrators published a paper that contemplates banning embedded compensation arrangements and requiring instead that investors pay their advisors directly.
 
Mar. 2 CSA Binary options fraud task force
The Canadian Securities Administrators launched a task force to tackle more aggressively binary options fraud. It is designed to raise awareness and warn investors against dealing with binary options trading firms.
 
Feb. 27 CSA Enforcement declines, while no-contest rises
Securities enforcement activity declined overall in Canada last year, according to the Canadian Securities Administrators. However, but the Ontario Securities Commission's no-contest settlement process was key to generating a large jump in money being returned to investors. The CSA also issued a total of 60 investor alerts during 2016, with more than half of these dealing with binary options firms.
 
Feb. 27 BIS Blockchain technology could enhance transparency
A new report from the Bank for International Settlements aims to help the financial services sector assess the uses and risks associated with distributed ledger technology (DLT) within payments systems. The BIS report also examines the implications of using distributed DLT, also known as blockchain technology, in payment clearing and settlement.
 
Feb. 23 SEC

Policy guidance on robo-advisors released
The U.S. Securities and Exchange Commission published an investor bulletin along with revised investment industry guidance on the fast-growing robo-advisor sector. The updated guidance from the SEC's division of investment management aims to address the "unique issues" robo-advisors raise, with suggestions for meeting their disclosure, suitability and compliance obligations.

Feb. 23 CSA

Launch of regulatory sandbox
The Canadian Securities Administrators introduced a national "regulatory sandbox" for novel products and services. The concept will allow financial services firms to test innovative products and services without requiring full regulatory approval in a way that also provides investor protection.

Feb. 22 MFDA

Key compliance priorities for 2017
Suitability and know-your-client (KYC) issues, the second phase of the client relationship model (CRM2) and cybersecurity are among the top priorities for the Mutual Fund Dealers Association of Canada (MFDA) in 2017. The MFDA notice indicates suitability and KYC issues will continue to be the SRO's primary focus in compliance exams. The MFDA will also continue assessing firms' compensation practices and internal controls to manage compensation-related conflicts.

Feb. 22 IOSCO

Review of loan fund risks
Investment funds that hold loans in their portfolios represent a number of risks, but these risks are not yet serious enough to warrant further regulatory activity, according to a report from the International Organization of Securities Commissions.

Feb. 22 OSC

Fintech agreement to ease expansion
The Ontario Securities Commission and the U.K.'s Financial Conduct Authority signed a deal this week allowing regulators to refer innovative financial technology (fintech) firms to one another to ease their entry into their respective markets.

Feb. 21 Europe

Financial services sector vulnerable to terrorism related abuses
The European Securities and Markets Authorities, the European Banking Authority and the European Insurance and Occupational Pensions Authority issued a joint opinion, warning that the financial services sector is vulnerable to abuse by financial criminals due to weaknesses in firms' controls, regulatory arbitrage, a lack of access to intelligence on terrorist suspects and the risk of transactions being driven underground. "Over the course of the last two years, terrorist attacks have been committed in several EU member states. There is evidence to suggest that in at least some cases, terrorists abused legitimate payment channels to facilitate their actions," the joint opinion says.

Feb. 21 NASAA/
SEC

Information sharing on crowdfunding
The North American Securities Administrators Association and the U.S. Securities and Exchange Commission signed an information-sharing agreement to facilitate intrastate crowdfunding offerings. Rules to provide more flexibility for intrastate crowdfunding offerings go into effect in April.

Feb. 21 MX

Montreal Exchange to target market manipulation
The Montreal Exchange revealed its compliance priorities for 2017, which include plans to target manipulative and deceptive trading; firms' compliance and supervisory obligations, including their duty to oversee clients with direct electronic access; and accurate reporting of firms' derivatives positions.

Feb. 13 IIROC

Work-from-home guidelines
The Investment Industry Regulatory Organization of Canada (IIROC) issued new guidance for firms on supervising employees who work from home.

Feb. 13 ASC

Whistle blower program considered
The Alberta Securities Commission will consider a new whistleblower program to boost compliance and enforcement while also curbing the regulatory burden.

Feb. 9 BCSC

Investors may sell cease-traded securities back to dealers
The B.C. Securities Commission will allow investors in British Columbia to sell cease-traded securities back to their investment dealers under certain conditions. The measures will mean cost savings for dealers, and provide relief for investors.

Feb. 9 CSA

Exchange-traded derivatives markets
The Canadian Securities Administrators published a notice that reviews efforts to enhance segregation and portability arrangements for exchange-traded derivatives markets, particularly the commodities and financial futures markets.

Feb. 8 IOSCO

Fintech and regulatory risk
Among other issues, a new report from the International Organization of Securities Commissions (IOSCO) notes that the emergence of fintech is likely to give rise to new kinds of regulatory risk.

Feb. 7 ESMA

Too early to regulate blockchain
A new report from the European Securities and Markets Authority concludes that it's too soon for any regulatory action on blockchain, given that the technology, which is widely seen as a potential replacement for various back-office processes such as clearing and settlement systems, remains at an early stage.

Feb. 7 IOSCO

Benchmark reforms need more work
The International Organization of Securities Commissions says more needs to be done to implement reforms to the creation and operation of financial benchmarks: these benchmarks were adopted in response to manipulation scandals.

Feb. 3 SEC

Alt-mutual fund warning issued to investors
The U.S. Securities and Exchange Commission published a bulletin that highlights the features and risks of "alternative mutual funds." These "alt funds" hold non-traditional investments, or use complex investment and trading strategies, which represent added risks to investors, the bulletin says. In Canada, securities regulators are currently considering rule changes that would enhance retail investor access to alternative investments.

Feb. 3 US DOL

Dodd-Frank/ Fiduciary Rule for advisors likely to weaken
U.S. President Donald Trump signed orders ordering the Treasury Secretary to review the 2010 Dodd-Frank financial oversight law. He also signed a presidential memorandum instructing the U.S. Labor Department to delay implementing a new rule that requires financial professionals to put their clients' best interests first when giving advice on retirement investments. To take effect in April, the rule will be delayed for 90 days while it's reviewed.

Feb. 2 OSC

New website to help clients with CRM2
The Ontario Securities Commission launched a new website to help investors understand their new annual reports that include the costs of investing and portfolio performance as part of the second phase of the client relationship model reforms.

Feb. 1 MFDA

Signature falsification flagged
The mutual fund dealer business is still plagued by representatives falsifying client signatures in one way or another, according to an updated notice from Mutual Fund Dealers Association of Canada staff.

Jan. 31 OSC

New members for SPAC
The Ontario Securities Commission announced that its Securities Proceedings Advisory Committee will include five new members. They join seven other Bay Street lawyers who are still serving on the SPAC along with three members of the OSC's enforcement branch and three members of the OSC's Office of the Secretary, including Grace Knakowski, the secretary to the OSC who also chairs the SPAC.

Jan. 26 CSA

Integrity of proxy voting process
The Canadian Securities Administrators set out guidance for  tabulation of proxy votes. The voluntary protocols set out expectations on the responsibilities of firms that handle meeting vote reconciliation.

Jan. 26 OSC

Fintech Advisory Committee members announced
The Ontario Securities Commission announced the first members of its Fintech Advisory Committee. Committee members will serve one-year terms and advise staff on developments in the financial technology (fintech) market.

Jan. 25 MFDA

Recent cases on suitability reviewed to provide guidance
A new paper from the Mutual Fund Dealers Association of Canada reviews enforcement cases brought against advisors involving questions of suitability: these issues remain at the heart of conduct standards for the Canadian investment industry.

Jan. 23 BCSC

Investors not aware of fees: CRM2-linked study
Initial results of a three-part research project from the B.C.  Securities Commission  to assess the impact of the new annual cost reports required under the second phase of the client relationship model reforms were released. The first phase of the research, conducted on behalf of the BCSC this past November and December, found that 28% of survey participants don't know how their advisors are paid while 36% are not familiar with the types of fees they pay.

Jan. 23 OSC

Advisors need more training for risk assessments
Securities regulators should look at bolstering standards and training for assessing investors' risk tolerance, according to a report published from the Ontario Securities Commission's (OSC) Investor Advisory Panel (IAP). The research, carried out by PlanPlus Inc., found that most risk-profiling questionnaires are not "fit for purpose" and aren't capable of identifying risk-averse investors.

Jan. 19 CSA

Issuers called on to improve reporting of cybersecurity risks
A new review of issuer disclosure from three of Canada's largest provincial securities commissions finds that most firms aren't yet providing much specific information about their cybersecurity efforts and possible breaches.

Jan. 19 OBSI

New enforcement powers to be considered
The Ombudsman for Banking Services and Investments will consider new enforcement powers amid a variety of strategic initiatives. OBSI published a new strategic plan to "explore and evaluate alternatives" to its existing "name and shame" enforcement power, among other matters.

Jan. 17 MSC

Investors warned about RRSP stripping scams
The Manitoba Securities Commission warned investors about so-called "RRSP stripping" scams in advance of an investment seminar scheduled for Jan. 21 that raised "a number of associated red flags," the MSC said in a statement prior to the seminar. The MSC statement noted that the event announcement featured a speaker, Sunil Tulsiani, "under cease-trade orders in Ontario and Manitoba and [who is] currently charged with securities offences in Ontario.'

Jan. 12 FSB

Proposals to benefit global asset managers
Global asset managers will likely benefit from policy proposals from the Financial Stability Board that aim to address systemic risk concerns in the asset-management sector, a new report from Moody's Investors Service Inc. suggests.

Jan. 12 FSB

Systemic risks and asset management
The Financial Stability Board published a package of 14 policy recommendations to combat potential financial stability risks in the asset-management business, including excessive leverage, liquidity mismatches, securities lending, operational risk, and the challenges asset managers face in stressed conditions.

Jan. 10 IIROC

CRM2 reporting exemptions granted
The Investment Industry Regulatory Organization of Canada is granting exemptions from new annual cost and performance reporting requirements under the second phase of the client relationship model reforms for certain firms for which this type of reporting is redundant or otherwise unnecessary.

     

 

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