From the Regulators

Regulatory deadlines and updates for financial professionals. New this update: proficiency issues; robo-advisors and much more.

By IE Staff |

Previous Months


Oct. 5 CSA

Proposed changes to custody requirements
The Canadian Securities Administrators published proposals to enhance custody requirements and clarify activities that may be conducted by exempt market dealers. Comments on the proposals close Oct. 5.

14 ASC

Comment sought on women on boards requirements
Securities regulators in Alberta are proposing to follow the lead of other Canadian Securities Administrators in setting disclosure requirements for issuers regarding the representation of women on corporate boards and in senior management. Comments close.


Comment sought on investment fund terminations
The International Organization of Securities Commissions on published a consultation report on Good Practices for the Termination of Investment Funds, which proposes a set of good practices on the voluntary termination process for investment funds. Comments due.


Changes to bank capital rules
The Office of the Superintendent of Financial Institutions released for public consultation revisions to its Capital Adequacy Requirements Guideline (CAR). The draft guideline includes planned revisions to the treatment of insured residential mortgages among other changes to mortgage risk rules. Comments close.



Proposed guidance to enhance oversight of CCPs
The International Organization of Securities Commissions and the Committee on Payments and Market Infrastructures published a report on measures to enhance the resilience of central counterparties, following the financial crisis. Comments due.


Risk and capital requirements for mortgage providers
The Office of the Superintendent of Financial Institutions released for comment a draft advisory updating the capital requirements for mortgage insurers, to account for the increase in residential mortgage insurance risk and declining housing affordability. Comments close.



Members for advisory committee
The Ontario Securities Commission is seeking applicants for membership on its registrant advisory committee (RAC). The committee of 10 to 12 includes members from a range of registration categories. Application deadline is Oct. 24.


Move to T+ 2 proposed
IIROC proposed amendments to both its dealer rules and its trading rules to facilitate the move to reduce the settlement cycle to the same timeline as the U.S. market, to the current trade date plus two business days (T+2) from the current T+3. Comments due.




September FCA Tougher whistleblower rules in U.K.
Financial firms in the U.K. will have to install "whistleblower champions" to encourage internal reporting of possible misconduct, under new rules introduced by the Financial Conduct Authority and the Prudential Regulation Authority (PRA). New rules in effect.
September IOSCO

Margin requirements for derivatives delayed
Global policymakers delayed implementation of margin requirements for non-cleared over-the-counter (OTC) derivatives until the fall of 2016.


Consolidated enforcement rules in force
The Investment Industry Regulatory Organization of Canada  announced that its new set of consolidated enforcement rules for investment dealers come into effect on Sept. 1. Thus, disciplinary proceedings that begin on or after Sept. 1 will be governed by the procedures set out in the new rules.


Consultation on distributed ledger technology
The European Securities and Markets Authority issued a paper for public consultation on distributed ledger technology (DLT). DLT underpins the functioning of virtual currencies, such as Bitcoin, using a record keeping network, rather than a centralized entity, to track and validate transactions. Comments close.


Comments sought on proposed derivatives framework
Canada's securities regulators are seeking feedback on a proposed framework for the calculation and exchange of margin and collateral relating to non-centrally cleared derivatives. The consultation paper can be found on CSA members' websites. The comment period is open until Sept. 6.

13 IIROC Nine more months to unwind control arrangements
Investment dealers have another nine months to unwind arrangements that put advisors in full control of the financial affairs of clients, either by serving as trustees, executors, or having powers of attorney (POAs). The original deadline was Dec. 13.

Policy proposals to deal with stability risks
The Financial Stability Board published a set of proposed policy recommendations dealing with four basic financial stability risks that may originate in the asset management sector, including: funds use of leverage; securities lending; liquidity risks; and the operational risks associated with transferring investment mandates in stressed conditions. Comments close.

28 IAP

Roundtable on risk profiling and retail advice
The Investor Advisory Panel, an independent committee of the Ontario Securities Commission (OSC), will be jointly organizing a roundtable with the OSC Investor Office on Sept. 28 to discuss research commissioned by the IAP last year on risk profiling, and its role in the advice process.

28 OSC

Proposals for distributions outside Canada
The Ontario Securities Commission is looking for feedback on its proposals to streamline capital raising activity outside of Canada. It has published a proposed rule and companion policy for a 90-day comment period, which closes on Sept. 28.

MFDA Proficiency standards to sell ETFs out for comment
The Mutual Fund Dealers Association of Canada published proposals for public comment that would establish new, minimum proficiency standards for representatives who sell exchange-traded funds. Comments close.
30 CSA

Roundtables on proposed reforms
The Canadian Securities Administrators will hold a series of roundtable hearings in five cities across Canada in early December to "further explore issues" into a set of proposals designed to enhance client/financial advisor relationships, including the introduction of a possible "best interest" standard, that were raised in a consultation paper published this past April.


Report on corporate bond liquidity, data reporting, disclosure
Concerns about corporate bond market liquidity may be overblown according to a new International Organization of Securities Commissions (IOSCO) report. The report also deals with data reporting and public disclosure requirements. Comments close.

30 CSA

Best-interest comment period extended
The Canadian Securities Administrators (CSA) has extended the comment period for its consultation paper on the introduction of a best-interest standard as well as other reforms until Sept. 30, representing an additional five weeks from the previous deadline of Aug. 26.

30 OSC

Exemption extension for MaRS VX
The not-for-profit investing facilitator has been granted an extension on regulatory relief from certain KYC and suitability requirements, which were to expire on Dec. 17. Extension expires.




5 Fed

Fed proposes new rule to curb systemic risk
The U.S. Federal Reserve Board proposed a new rule to curb systemic risk by improving the stability and resolvability of large, complex financial firms. Comments close on the proposal.

26 CSA

Best interest standard proposed
The Canadian Securities Administrators proposed a best interest standard, along with a series of  targeted reforms to address concerns regarding the investment industry's treatment of retail clients. Comments close.






Significant changes to pension investment regulations
Various final amendments to Schedule III of the regulations under the Pension Benefits Standards Act were published March 25, 2015. Amendments come into force.


Alternative performance measures
Final guidelines encouraging European issuers to publish more transparent, unbiased, comparable information on their financial performance was published by the European Securities andMarkets Authority. Guidelines in effect.


SRO to publish corporate debt trading data
The Canadian Securities Administrators announced that IIROC will become the "information processor" for corporate debt securities, effective July 4. IIROC will replace CanPX Inc., the existing dealer-owned information processor, whose term expires on June 30.


Revised proposal released
The co-operative national securities regulator took another step forward as federal officials released a revised version of the proposed new federal securities legislation. Comments close on the proposal.


Revisions to order protection rule
The Canadian Securities Administrators published final amendments that will revise the order protection rule and give investment dealers some freedom to decide which marketplaces to connect to, introduce a cap on active trading fees and a methodology for setting data fees, among other changes. Amendments in force.


Plain language rule out for comment
The Investment Industry Regulatory Organization of Canada published the full version of its proposed plain language rule book for public comment. Comments close.

14 OSC

Whistleblower program to begin
The Ontario Securities Commission revealed that its new Office of the Whistleblower will launch on July 14. The new program, which will allow the regulator to pay up to $5 million for tips that lead to significant enforcement action, will be headed by Kelly Gorman, who is currently deputy director of enforcement at the commission.


Insurance/mutual funds regulatory gap
The Canadian Council of Insurance Regulators is calling for industry input on how to address key gaps between the regulations pertaining to mutual funds and segregated funds in an issues paper released on Monday. Comments close.

15 CSA/

Requirement to provide two new reports takes effect
The Canadian Securities Administrators requirements for to reports — one that sets out clients' annual costs in terms of dealer compensation; the other detailing clients' portfolio performance — take effect.


Changes to proxy voting protocols proposed
The Canadian Securities Administrators published for comment a proposed new guidance that aims to make the voting process more credible and reliable. Comments close.

22 U.S.

Review of incentive-based pay
Six federal agencies (including the Federal Reserve and the SEC) proposed a rule for public comment that would prohibit incentive-based compensation arrangements that "encourage inappropriate risks" at large U.S. financial firms. Comments close.


Nominees sought for rules committee
The Investment Industry Regulatory Organization of Canada is seeking nominees for its market rules advisory committee (MRAC), which provides advice to the self-regulatory organization about proposed amendments to the trading rules, guidance on applying those rules, and other market regulation issues. Nominations close.

29 OSC

Members sought for seniors advisory committee
The Ontario Securities Commission is seeking members for its newly launched Seniors Expert Advisory Committee, which will advise staff on issues impacting older investors. Applications due.





Calculation of operational risk
The Basel Committee on Banking Supervision is proposing a new standardized approach to accounting for operational risk that uses a single, standard methodology and does away with internal modeling to simplify banks' regulatory capital calculations. Comments close.


Reps and powers of attorney
The Mutual Fund Dealers Association of Canada has proposed rule amendments that aim to clarify the limited circumstances in which reps can act under powers of attorney (POAs), or as trustees and executors for clients.

17 ONT

Overhaul of financial planning regulation
Financial planning should be regulated and financial advice should be subject to a statutory fiduciary duty, recommends an expert committee examining these issues for Ontario's provincial government. Comments on the report are due.

23,29 FRB

U.S. banking stress test results
The U.S. Federal Reserve Board announced that results from the current round of supervisory stress tests will be released on June 23. As well, the results from the accompanying comprehensive capital analysis and review (CCAR) exercise will be released on June 29.

23 CSA

Further harmonization for passport system
The Canadian Securities Administrators are introducing a new rule to allow cease trade orders stemming from the failure to file continuous disclosure documents to automatically apply in multiple jurisdictions. Rule in effect.

29 OSC

Risk questionnaires to be completed
The Ontario Securities Commission published the 2016 edition of its risk assessment questionnaire (RAQ), which the OSC uses to rank firms in terms of the riskiness of their businesses. This ranking influences  which firms will be selected for compliance examinations. Firms are required to complete the RAQ by June 29. The OSC is hosting outreach sessions on May 30 (online) and May 31 (in-person) to guide firms through the process of completing the questionnaire.


Harmonization of exempt-market reporting
The Canadian Securities Administrators is moving ahead with a new exempt-market reporting system that will harmonize reporting across the country and increase the amount of information regulators collect although it has backed off from certain aspects of previous proposals. New system in effect.



Approval extended for CanPX
With plans to bolster bond market transparency, securities regulators gave debt reporting firm CanPX Inc. a six-month extension as an approved information processor. Extension expires.




4 CSA Exempt market filings to be made on SEDAR
The CSA announced rule changes doing away with paper-based filing for exempt-market reports. Certain filings, including offering memorandums and reports of exempt distribution, will have to be made in electronic format on SEDAR. The requirements do not include Ontario or British Columbia, which already have their own electronic filing systems for the exempt markets. New rules in force.

Comment sought on insurance capital guidelines
The Office of the Superintendent of Financial Institutions released for comment a draft new capital adequacy guideline for federally regulated life insurance companies. Comments close.



Best interest test proposed
The retail advisor-client relationship is front and centre in the Ontario Securities Commission's plans for the year ahead, which include proposing a "best interest" standard and devising measures to address conflicts of interest in investment fund compensation structures. Comments on the draft statement of policies due.


Fundamental changes to takeover bid regime
The Canadian Securities Administrators announced a series of changes to the take-over bid rules designed to give target companies more time to consider their options and independent shareholders a fairer shake in these fights. New rules in effect.


Australia consults on robo-advisors
The Australian Securities and Investments Commission issued a consultation paper and draft guidance on regulating digital advice to retail investors. The goal is to develop more guidance for robo-advisors, including licensing.  Comments close.

24 CSA

Exempt market filings on SEDAR
The Canadian Securities Administrators published new guidance for exempt market issuers on the new requirement to make regulatory filings using the System for Electronic Document Analysis and Retrieval (SEDAR). The requirement to use SEDAR (except in B.C and Ontario, which have their own systems) takes effect May 24.

24 CSA

Comment sought on changes to derivatives transactions
The Canadian Securities Administrators are proposing a revised rule that would mandate central counterparty (CCP) clearing in over-the-counter (OTC) derivatives markets, which aims to limit the impact of the proposed requirements. Comments close.


Client cash rule changes proposed
The Investment Industry Regulatory Organization of Canada is re-proposing changes to its rules that set a new limit on dealers using client cash balances.? Comments close.

30 CSA

Point of sale delivery of Fund Facts comes into force
Mutual fund dealers must deliver Fund Facts documents to investors who buy mutual funds before they buy the fund.

31 OCC

Feedback on fintech sought
The U.S. Office of the Comptroller of the Currency published a report for comment on its vision for "responsible innovation" in the banking sector. Comments close.





Anti-elder abuse training program
The North American Securities Administrators Association, which includes Canadian regulators, is offering a new training program to help broker-dealers and investment advisers identify and report suspected elder financial abuse. The program becomes available this month.

17 CSA

Changes to derivative trade reporting rules
Regulators in Alberta, Saskatchewan, New Brunswick, Nova Scotia, Newfoundland, PEI and the territories published proposed amendments to their derivatives trade reporting rules to harmonize with amendments published last year by the regulators in Ontario, Quebec, and Manitoba. Comments close.

19 CSA

New rules for OTC derivatives
The Canadian Securities Administrators published proposed rules to ensure customers are adequately protected in the process of clearing over-the-counter derivatives trades. Comments close.


European stress test results published
The European Securities and Markets Authority announced it will publish the results of its first EU-wide stress test exercise regarding Central Counterparties. Results released.

29 IFIC Rule changes could lead to disarray: IFIC
The Investment Funds Institute of Canada warned that possible rule changes the Investment Industry Regulatory Organization of Canada is considering, to allow investment dealers to employ mutual fund representatives, would throw the existing self-regulatory organization structure into disarray. Comments on the IIROC proposals close.

Incorporation for reps
In response to industry requests for more time, the Investment Industry Regulatory Organization of Canada is extending the comment period on its white paper that proposes allowing reps to incorporate, and dealers to employ mutual fund reps. Comments close.







Requiring insurers to include previous year premiums on renewals
The U.K. Financial Conduct Authority proposed that insurers be required to publish the details of the previous year's premiums on renewal notices that are sent to consumers. Comments close.



Volunteers sought for enforcement
The Mutual Fund Dealers Association of Canada is looking for new volunteers to sit on its regional councils and help adjudicate disciplinary cases. Nominations due.


New rules for high frequency traders
The U.K. Financial Conduct Authority published final rules to improve the accountability of people that engage in certain activities, such as algorithmic and high-frequency trading. New rules in effect.


U.K. calls for comment on investor protection reforms
The Financial Conduct Authority is consulting on forthcoming regulatory reforms in Europe that aim to bolster investor protection and reduce systemic risks. Comments close.


New risk rating for funds proposed
The Canadian Securities Administrators has proposed a standardized methodology for assigning risk levels to mutual funds for use in the  Fund Facts documents and for exchange-traded funds to use in ETF Facts documents. Comments close.


Expanded CRM2 disclosure considered
The Mutual Fund Dealers Association of Canada published a bulletin contemplating a possible expansion of the cost and compensation reporting required under the second phase of the client relationship model (CRM2) reforms. Comments close.



Revisions to credit risk standards
The Basel Committee on Banking Supervision published updates to the capital rules for large, global banks, which restores the use of external credit ratings, among other changes. Comments close.


Client research project
The Mutual Fund Dealers Association of Canada launched a research project to better understand the client base of fund dealers. Investor Economics Inc. will carry out a project to assess dealers' clients. Deadline for feedback.


New guidelines on bank disclosures
The Office of the Superintendent of Financial Institutions issued a draft guideline on banks' regulatory capital disclosure requirements. Comments close.


Proposed dark rules anti-avoidance provision scrapped
Securities regulators are turning to guidance, rather than new rules, to address concerns about firms systematically sending their retail order flow south of the border for execution in U.S. dark pools. Comments close.


Personal corporations for advisors
The Investment Industry Regulatory Organization of Canada issued a white paper that considers allowing investment dealer representatives to use personal corporations and allow firms to employ reps whose business is limited to trading mutual funds and exchange-traded funds. Comments close.





OTC rules for derivatives need improvement
The European Securities and Markets Authority proposed rule changes designed to enhance the functionality provided by trade repositories. ESMA says that the current comparability of the data being reported is not adequate and ESMA's access to those data isn't good enough. Comments close.


New requirements for clearing agencies
The Canadian Securities Administrators introduced new requirements for clearing agencies and formalizing their oversight arrangements to bolster the integrity and oversight of financial market infrastructure. Comments close.


Proposed changes to trade repositories rule
The Ontario Securities Commission published proposed amendments to the derivatives trade reporting regime that aim to reduce the compliance burden for certain market players. New rules in force July 29, 2016 may be affected. Comments on the proposals close.

Mid-month CFTC

U.S. infrastructure firms to improve cybersecurity
The U.S. Commodity Futures Trading Commission issued proposals aimed at improving cybersecurity safeguards for the automated systems used by infrastructure firms, such as derivatives clearing organizations, markets, swap execution facilities, and data repositories. Comments close.

15 Finance

Tax treatment of donations and trusts
The federal Department of Finance released for consultation draft legislative proposals that would modify the income tax treatment of certain trusts and their beneficiaries. Comments close.


Independent review, submissions due
The Ombudsman for Banking Services and Investments invited comments on an independent review of the dispute resolution service.Now underway, the review is scheduled to deliver initial recommendations March 31. The review excludes banking-related complaints. Comments close.



Cyber resilience proposals
The International Organization of Securities Commissions and the Committee on Payments and Market Infrastructures released proposed guidance on cyber resilience for organizations that make up the financial market infrastructure (FMIs). Comments close.



January 2016



New members for SAC sought
The Ontario Securities Commission is seeking four new securities industry regulatory experts to sit on its Securities Advisory Committee (SAC). Their term begins in January.


Final MCCSR deadline issued
The Office of the Superintendent of Financial Institutions published the final version of the 2016 Minimum Continuing Capital and Surplus Requirements guideline for life insurance companies. The updated rules, which take effect on Jan. 1, 2016, make changes to insurer's capital requirements that aim to improve regulatory transparency.



Amendments to mortgage loan insurance
New regulations would create new eligibility requirements for mortgage loans to qualify for mortgage loan insurance. In force.



Largest banks must hold more capital
Large, systemically importantbanks in the U.S. must hold additional capital, or shrink their businesses,under new rules approved by the U.S. Federal Reserve Board.

12 OSC

Whistleblower reward to be hiked to $5 million
The Ontario Securities is proposing the adoption of a new whistleblower program that will pay up to $5 million for tips that generate significant enforcement action. Comments close.

13 CSA

New OM exemption to be available
Six provincial regulators issued a notice indicating that the OM exemption will be introduced in Ontario and that the existing exemption in Alberta, Quebec, New Brunswick, Nova Scotia and Saskatchewan will be revised to strengthen investor protection.

Ontario's new exemption takes effect Jan. 13, 2016 while the revised exemptions in the other provinces kick in on April 30, 2016.

18 ASC

Fees to rise in Alberta
Regulatory fees are on the way up for both registered firms and individual reps in Alberta under a proposed new fee schedule published by the Alberta Securities Commission. Comments on proposed increases close. New fees in force, Dec. 1, 2016.


Anti-money laundering guidelines proposed
The Joint Committee of European Supervisory Authorities launched public consultations on two anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines. Comments close.

25 CSA

Provinces publish crowdfunding exemption
Securities regulators in Ontario, Quebec, Manitoba, New Brunswick and Nova Scotia published in final form a new rule that introduces a crowdfunding prospectus exemption. Pending ministerial approval, the new exemption takes effect.


Crowdfunding comes to Ontario
Ontario approved the Ontario Securities Commission's new prospectus exemption and its registration framework for crowdfunding portals, which will take effect on Jan. 26.

29 ESA

Europe proposes new retail disclosure documents
The Joint Committee of the European Supervisory Authorities, including banking, insurance and securities, has proposed new contents for retail disclosure documents, known as Key Information Documents (KIDs). The deadline for comments is Jan. 29, with KIDS in force Jan. 1, 2017.


Candidates sought for CDS board
The Investment Industry Regulatory Organization of Canada seeks candidates for a seat on the board of the Canadian Depository for Securities Limited (CDS). IIROC may nominate one director to the board of CDS. Deadline for nominations.



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