| Dec. 22|| OSC|
Guidance on attendance at mutual fund sales conferences
Following a compliance review on mutual fund-sponsored sales conferences, the Ontario Securities Commission issued new guidance to avoid conflicts of interest in the selection of reps to attend conferences.
| Dec. 22|| MFDA|
Client complaints about proprietary products received
Mutual fund dealers that sell proprietary products must give clients up front disclosure of the costs and tax implications of one day moving firms, the Mutual Fund Dealers Association of Canada says. The MFDA has received complaints from clients that were unaware that they could not move certain funds with them to a new dealer because they are proprietary products.
| Dec. 22|| OSC|
Targeted reviews of scholarship plans
The Ontario Securities Commission is carrying out a targeted review of RESP providers, to assess their operational practices.
| Dec. 20|
Initiative to educate workers about retirement
The North American Securities Administrators Association launched an initiative to deliver on-the-job investor education designed to help workers understand how to plan for retirement. Known as “Start Today and Retire Tomorrow” (STaRT), uses workplace seminars to educate workers on strategies to help attain retirement security.
| Dec. 20|| MFDA|
CRM2 resource for investors released
The Mutual Fund Dealers Association of Canada released a resource for investors that provides them with information on understanding the new cost and performance investment reports mandated under the second phase of the client relationship model (CRM2).
| Dec. 19|| FRB|
Large U.S. banks to publicly disclose liquidity strength
The U.S. Federal Reserve Board approved a rule that will, for the first time, require large banks to publicly disclose certain liquidity-related information, including average liquidity coverage ratios, and their holdings of high-quality liquid assets (HQLA), each quarter.
| Dec. 19|| ESAs|
No action on robos at this time
European regulators say they will continue to monitor the growth of robo-advisors but have decided not to take any action at this stage.
| Dec. 16|| OSFI|
Expectations for directors to be reviewed
The Office of the Superintendent of Financial Institutions launched a consultation to review its expectations for boards of directors of federally regulated financial institutions.
| Dec. 16|| IOSCO|
Guidance focuses on best practices re LIBOR scandal
The International Organization of Securities Commissions issued guidance to ensure investors and others get disclosure from the operators of financial benchmarks about their adherence to the best practices developed in response to the LIBOR scandal.
| Dec. 16|| FINTRAC|
Guidance on financial crimes associated with sex trafficking
The Financial Transactions and Reports Analysis Centre, Canada’s anti-money laundering agency, issued an “operational alert” to help financial services institutions spot indicators of financial activity associated with money laundering of proceeds from “trafficking for sexual exploitation.”
| Dec. 15|| CSA/|
Concerns flagged over compensation practices
The Canadian Securities Administrators, the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada each published reports that examine various compensation arrangements in the retail investment business and the conflicts they can create, including a bias for proprietary products and incentives to sell products that may violate suitability standards.
| Dec. 15|| CSA|
Alternative investments and retail investors
Video: Dan Richards, CEO, Client Insights and Rebecca Cowdery, partner at Borden Ladner Gervais LLP, discuss the Canadian Securities Administrators’ proposal to make alternative funds available to retail investors, with heightened restrictions. Comments close Dec. 21.
| Dec. 15|| IOSCO|
Impact of new accounting standards on firms
New international accounting standards are likely to have a major impact on the financial reporting of many issuers, according to the International Organization of Securities Commissions. It is calling on companies to disclose the likely effects to investors.
| Dec. 15|| ASIC|
Fintech licensing exemption introduced in Australia
The Australian Securities and Investments Commission introduced the first-ever registration exemption for financial technology (fintech) firms that will allow eligible, fledgling fintech businesses to test their services with a limited number of retail investors without holding a licence.
| Dec. 14|| FINTRAC|
Canada supports global efforts to oversee money services
The Financial Transactions and Reports Analysis Centre of Canada, Canada’s anti-money laundering authority, supports recent efforts at global co-operation to address the risks of financial crime, particularly focused on money services businesses that transmit or convert money.
| Dec. 9|| IIROC|
Continuity test set for October, 2017
The Investment Industry Regulatory Organization of Canada stated that its next bi-annual industry continuity planning test has been set for Oct. 14, 2017. IIROC’s test will coincide with a similar exercise in the U.S.
| Dec. 9|| OSFI|
Revisions to capital rules released
The Office of the Superintendent of Financial Institutions published its latest set of changes to the capital adequacy requirements (CAR). They include revisions for insured residential mortgages and provide final guidance on the implementation of the downturn loss given default (DLGD) floor that applies to banks using internal models for loans secured by residential real estate.
| Dec. 9|| FCA|
U.K. considers tighter rules for crowdfunding
The U.K.’s Financial Conduct Authority is planning to reform the regulatory regime for crowdfunding that could see the regulator introduce prescriptive rules after finding concerns about transparency, complexity and conflicts of interest in the current market.
| Dec. 8|| CSA|
Process for overseeing market fees published
The Canadian Securities Administrators published its methodology for overseeing market data fees in the wake of ongoing complaints about the costs of market data.
| Dec. 6|| OSC/|
Roundtable discusses best interests standard
The Ontario Securities Commission held a heavily attended round table on consultation paper 33-404, best interests standard proposals and targeted reforms, released in April. The B.C. Securities Commission (BCSC) held a similar discussion a week earlier, confined to targeted reforms.
| Dec. 5|| FCA|
Seniors fraud risk still high
New research from the U.K.’s Financial Conduct Authority reveals 32% of U.K. residents aged 75 years and over and 22% of those aged 55 and over believe they have been targeted by an investment scam in the past three years.
| Dec. 2|| CFTC|
Capital requirements for swap dealers proposed
The U.S. Commodity Futures Trading Commission approved proposed rules that establish minimum capital requirements for swaps dealers and major swap participants that aren’t otherwise subject to the capital rules of a prudential regulator. Proposals out for 90 day comment period.
| Dec. 1|| NZ|
New financial sector legislation in effect
New financial sector legislation came into effect in New Zealand, ushering in the “beginning of a new era” in financial regulation, according to the Financial Markets Authority, which sees, “a stronger regime… based on the good conduct of providers.”
| Dec. 1|| ESMA|
Free credit ratings to be available to investors
The European Securities and Markets Authority launched a new database with free information on credit ratings and rating outlooks on its website. The new database, known as the European Rating Platform, will allow investors to easily compare all credit ratings for a specific entity or instrument.
| Nov. 28|| OSFI|
Lenders cautioned about mortgages
Canada’s banking regulator warned lenders to remain strict in the way they underwrite mortgages to prevent crises for financial institutions if low interest rates rise and property values drop.
| Nov. 24|| OSC|
Concerns raised over financial reporting issues
The Ontario Securities Commission’s Office of the Chief Accountant published a staff notice that examines several financial reporting issues, including companies’ use of non-standard accounting metrics, and indicates that the use of non-GAAP measures remains an “ongoing area of focus” for the regulator.
| Nov. 24|| Alberta|
Expanded powers for credit unions
The Alberta government introduced legislation to allow provincial credit unions the right to broker insurance through a subsidiary as long as they do so via a separate and distinct location.
| Nov. 18|| CSA/|
Latest oversight review
The Canadian Securities Administrators’ latest oversight review of the Mutual Fund Dealers Association of Canada finds that the MFDA is fulfilling its duties, but flags a handful of areas for improvement in enforcement and financial compliance.
| Nov. 18|| FCA|
Active management costs mostly not justified
Although investors pay high fees for active management, “on average, these costs are not justified by higher returns,” according to the interim results of a U.K. Financial Conduct Authority study of the asset-management marketplace.
| Nov. 17|| FSB|
Work plan announced
The Financial Stability Board announced that global policymakers have agreed on a work plan for 2017.
| Nov. 17|| CSA|
Dealer/portfolio manager arrangements targeted
The Canadian Securities Administrators issued new guidance to address its concerns about the growing popularity of arrangements in which an investment dealer holds a client’s assets and a portfolio manager trades those assets on a discretionary basis for the client.
| Nov. 16|| CFTC|
Clearing house test results released
The major derivatives clearinghouses are capable of weathering extreme market scenarios, according a report on the stress testing of these firms by U.S. regulators, according to the U.S. Commodity Futures Trading Commission.
| Nov. 15|| SEC|
U.S. national market system plan
The U.S. Securities and Exchange Commission voted to adopt a consolidated audit trail (CAT) that would replace the existing system of reporting to various self-regulatory organizations to enhance oversight of the U.S. equity and options markets.
| Nov. 14|| FSRA/|
Ontario puts focus on financial regulation
Ontario reiterated support for a co-operative national securities regulator and a new provincial financial services regulatory authority. Further announcements are expected in the spring of 2017.
| Nov. 14|| ESMA|
More time for OTC clearing compliance proposed
Financial counterparties with a limited volume of derivatives activity should be given until 2019 to comply with new central clearing requirements for over-the-counter derivatives, according to the European Securities and Markets Authority.
| Nov. 11|| Europe|
Point of sale disclosure revisions
The European Commission has asked European Supervisory Authorities (ESAs) to consider changes to the proposed new point-of-sale disclosure regime for packaged retail securities, which was supposed to take effect in January 2017, but has now been delayed until 2018.
| Nov. 10|| ESMA|
Final advice on rules for financial benchmarks, LIBOR
The European Securities and Markets Authority finalized its technical advice to the European Commission on important aspects of the rules for financial benchmarks, in the wake of the LIBOR manipulation scandal. Implementation is expected Jan. 1, 2018.
| Nov. 10|| EBA|
New accounting standards, credit loss provisions
The adoption of new international accounting standards is expected to increase provisions for credit losses at European banks, and cut into their capital positions, according to a report published by the European Banking Authority.
| Nov. 8.|| Ontario|
New financial services regulator announced
Ontario is planning to introduce a new financial services regulatory authority (FSRA) following recommendations from an expert panel that called for a merger of the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corp. of Ontario (DICO) into a single regulatory agency.
| Nov. 8|| CPMI|
Monitoring fast payment services
The availability of fast payment services has more than doubled since 2010 and is expected to continue growing, according to a report issued by the Committee on Payments and Market Infrastructures, the standard setting organization for global clearing and settlement systems.
| Nov. 7|| FCA|
Firms selected for sandbox testing
The U.K. Financial Conduct Authority announced the firms selected to participate in testing through its regulatory sandbox for financial technology (fintech) firms. The concept allows firms to experiment with novel products, services, or business models in a limited testing environment with certain regulatory relief.
| Nov. 4|| EBA|
Consultation on capital regimes
The European Banking Authority (EBA) published a discussion paper that seeks feedback on the design of a new prudential regime for investment firms that would be tailored for different business models and inherent risks. A hearing is scheduled for Dec. 1.
| Nov. 2|| IIROC/|
Agreement to improve information sharing
The Investment Industry Regulatory Organization of Canada has signed a memorandum of understanding with the Canada Deposit Insurance Corp. that will allow the two organizations to co-operate and better protect depositors and investors when a CDIC member institution or a connected IIROC-regulated dealer firm encounters serious financial difficulties.
| Nov. 2|| OSC/|
Fintech related agreement signed
The Ontario Securities Commission has signed a deal with the Australian Securities and Investments Commission in which the two regulators pledge mutual support to innovative financial technology (fintech) firms in both jurisdictions.
| Nov. 1|| U.S.|
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory and guidance to financial services institutions on cyber-events and cyber-enabled crime.
| Nov. 1|| IADI|
Canadian elected to global body
Patrick Déry, superintendent, solvency, with Quebec’s Autorité des marchés financiers (AMF), has been elected to the executive council of global policy group the International Association of Deposit Insurers (IADI) at the organization’s latest annual general meeting in Seoul, South Korea. Its annual meeting occurs Oct. 8-13, 2017.
| Oct. 31|| IIROC|
Suitability top investor complaint
Unsuitable investments generate the most complaints by investors to the Investment Industry Regulatory Organization of Canada about the securities dealers the self-regulatory organization regulates, according to a new report from IIROC.
| Oct. 31|| ASC|
The Alberta Securities Commission announced the adoption of a new rule that creates a crowdfunding prospectus exemption.
| Oct. 28|| IOSCO|
Update on strengthening securities markets
Regulatory reforms to address issues in the securities markets that were revealed by the global financial crisis are well underway, according to a report published Friday by the International Organization of Securities Commissions (IOSCO).
| Oct. 27|| OCC|
U.S. regulatory fintech plans
On the heels of the opening of a fintech innovation hub by the Ontario Securities Commission, the U.S. Office of the Comptroller of the Currency (OCC) announced plans to launch an office to facilitate innovation in the U.S. banking industry.
| Oct. 26|| OSFI|
PRPP guides published
The Office of the Superintendent of Financial Institutions published two new guides that outline the process of applying for a federal pooled registered pension plan (PRPP) licence and for registering a PRPP with OSFI.
| Oct. 20|| IIROC|
Short selling and small caps
The Investment Industry Regulatory Organization of Canada is planning to address concerns raised by small-cap issuers about short selling. IIROC issued a report detailing the results of a roundtable held earlier in the year to examine market structure issues for small caps.
| Oct. 19|| CSA|
Videos to explain CRM2
The Canadian Securities Administrators released four animated videos on YouTube that aim to explain to investors the basics of certain aspects of the client relationship model, Phase 2 (CRM2) reforms, such as relationship disclosure, costs and account performance.
| Oct. 19|| U.S.|
Improving banks cybersecurity defences
U.S. federal regulators are looking to set up new standards for big banks’ planning and testing for possible cyberattacks. The aim is to bolster the banking industry’s defences amid concern over periodic security breaches at U.S. banks.
| Oct. 18|| FCA|
New standards for league tables
The U.K. Financial Conduct Authority published reforms to develop standards for underwriting league tables, in a bid to put an end to misrepresentation in banks’ pitches to clients.
| Oct. 13|| SEC|
Asset-management industry regulation stepped up
The U.S. Securities and Exchange Commission adopted rule changes for registered investment companies, mutual funds and exchange-traded funds. The rules introduce new monthly portfolio reporting forms and a new annual reporting form; enhance disclosure requirements in financial statements; and add new disclosures about securities lending.
| Oct. 12|| BCBS|
Loss absorbing rules revised
The Basel Committee on Banking Supervision published the final standard on total loss-absorbing capacity (TLAC) instruments, designed to limit contagion within the financial system if a global systemically important bank (G-SIB) runs into financial trouble and has to be shuttered. The new standards take effect Jan. 1, 2019.
| Oct. 7|| IIROC|
Lowered priority for investment and mutual fund dealer changes
The prospect of a major restructuring of the competitive and regulatory landscape between investment and mutual fund dealers appears to be off the table for the time being, according to a notice from the Investment Industry Regulatory Organization of Canada.
| Oct. 6|| FCA|
Client complaints decline in U.K.
U.K. financial services firms recorded a 2.6% reduction in new complaints between January and June 2016 compared to the previous six months, according to new data from the Financial Conduct Authority. The total number of complaints was 2.05 million.
| Oct. 5|| ESMA|
Product governance guidelines
The European Securities and Markets Authority launched a consultation on product governance guidelines. The proposals seek to enhance investor protection by regulating “the life-cycle of products or services in order to ensure that firms which manufacture and distribute financial instruments and structured deposits act in the clients’ best interests.” ESMA says.
| Oct. 4|| Fed|
Review of payments system
The U.S. Federal Reserve Board announced that a pair of national task forces have started to review 19 specific proposals for enhancing the U.S. payment system.
| Oct. 3|| IIROC|
Cybersecurity report cards coming
The Investment Industry Regulatory Organization of Canada announced Monday it will provide firms with “individual assessments of their cybersecurity preparedness” in October.
| Oct. 3|| GEM/|
Emerging markets, corporate governance
The Growth and Emerging Markets Committee of the International Organization of Securities Commissions published a report aimed at stronger corporate governance and regulatory frameworks in emerging markets by aligning them with international standards.
| Sept. 29|| CSA|
New exempt distribution reports
The Canadian Securities Administrators issued new guidance to its new exempt-distribution reports to alleviate concerns from institutional investors and foreign dealers that has reportedly prevented investors from participating in certain foreign deals.
| Sept. 29|| ESMA|
Future rules for benchmarks
The European Securities and Markets Authority on Thursday published a consultation paper regarding technical standards to govern the operation of financial benchmarks.
| Sept. 29|| SEC|
Shorter settlement cycle proposed
The U.S. Securities and Exchange Commission (SEC) on Wednesday proposed a rule amendment to shorten the standard 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). The goal is to reach the two-day cycle by Sept. 5, 2017.
| Sept. 28|| CSA|
Canadian issuers are making progress at improving gender diversity at the highest levels, but there’s more work to be done, according to a Canadian Securities Administrators (CSA) staff notice published on Wednesday.
| Sept. 28|| EBA|
Final guidance on sales remuneration
The European Banking Authority (EBA) on Wednesday published final guidelines on remuneration practices in the sale of retail banking products and services, which it says is “a key driver of miss-selling” in the financial sector. Instead of taking effect in Jan. 2017, as originally planned, the new guidance will come into force as of Jan. 2018.
| Sept. 27|| OSC|
Fintech innovation hub to be launched
Maureen Jensen outlined the Ontario Securities Commission’s plan to embrace financial technology (fintech), revealed some early results from its groundbreaking whistleblower program and made the case for fundamental reform to the client/financial advisor relationship in her first major speech as head of the OSC.
| Sept. 27|| CSA|
The Canadian Securities Administrators is trying to improve cybersecurity in capital markets with targeted compliance reviews, an examination of issuer disclosure to ensure it’s adequate, and plans for roundtable sessions with market participants to discuss emerging cyber threats.
| Sept. 27|| BCBS|
Serving underserved customers
The Basel Committee on Banking Supervision issued final guidance on its basic principles for regulating financial services institutions that serve customers who are either unserved, or underserved, by the traditional financial services sector.
| Sept. 23|| GPSG|
Study of blockchain for payments
A number of global banks are joining forces to establish the first interbank group for global payments based on distributed ledger, or blockchain, technology. Bank of America Merrill Lynch, Santander, UniCredit, Standard Chartered, Westpac Banking Corp., and Royal Bank of Canada are the founding members of the Global Payments Steering Group.
| Sept. 21|| FCA|
Insurance use of ‘big data’
The U.K. Financial Conduct Authority said its analysis of the insurance industry’s use of big data “found broadly positive consumer outcomes” and that its concerns about possible risks for consumers have not yet come true.
| Sept. 19|| FINRA|
“Recovery” scam warning
Investors should beware of offers to recover money lost from securities investments for an upfront fee, according to an investor alert issued by the U.S. Financial Industry Regulatory Authority. In particular, FINRA cautions investors who live outside the United States that some of these offers may be fraudulent.
| Sept. 16|| CPMI|
Bank payments and cyber security
The Committee on Payments and Market Infrastructures, the global standard setter for payment, clearing and settlement services, has established a task force to look into the security of wholesale payments that involve banks, financial market infrastructures and other financial institutions.
| Sept. 16|| MFDA|
Helping clients choose an advisor
The Mutual Fund Dealers Association of Canada published a brochure to help investors understand key elements of the financial advisory process, including financial advisor service levels, compensation structures and the responsibilities of both the client and the advisor
| Sept. 15|| FCA|
Update on aging population
The U.K. Financial Conduct Authority on Thursday outlined several key areas of focus in its strategy to deal with the United Kingdom’s aging population, and the need for the financial industry to meet the needs of an older client base.
| Sept. 14|| NASAA|
Enforcement results changing
The North American Securities Administrators Association reported that, for the first time since it has collected enforcement data, more registered members of the securities industry than nonregistered members were named in enforcement actions.
| Sept. 13|| IIROC|
Conflict of interest rules
The Investment Industry Regulatory Organization of Canada is pledging to ensure that its rules require full-service advisors to adhere to a best interests standard.
| Sept. 12|| NASAA|
The North American Securities Administrators Association published guidance to help firms develop procedures to identify and address diminished capacity in seniors and other clients, and suspected cases of financial exploitation.
| Sept. 8|| NASAA|
Expansion of Senior$afe
The North American Securities Administrators Association is stepping up its training for financial industry employees designed to help guard against the exploitation of senior clients.
| Sept. 8|| CSA|
FAQ on prospectus exemption
Securities regulators issued a notice to answer some of the frequently asked questions on the investment dealer prospectus adopted by British Columbia, Alberta, Saskatchewan, Manitoba and New Brunswick in January.
| Sept. 8|| CFTC|
Cybersecurity and commodities trading
The U.S. Commodity Futures Trading Commission approved two final new rules to guard against cyber attacks by establishing systems testing requirements, and took a step toward improved cross-border harmonization with Japan.
| Sept. 8|| FCA|
Review of crowdfunding rules in the U.K.
The comment period wraps up today for a U.K. Financial Conduct Authority (consultation paper that follows up on rules for crowdfunding adopted in the United Kingdom in 2014.
| Sept. 6|| OSC|
Disclosure issues with funds of funds
The Investment funds and structured products branch of the Ontario Securities Commission uncovered disclosure issues at investment funds that repackage other funds.
| Sept. 1|| CSA|
Perceived decline in fixed income liquidity
The Canadian Securities Administrators clarified the international dealer exemption in response to reports of a perceived decline in liquidity in the Canadian fixed income market. The guidance (Staff Notice 31-346) addresses concerns raised by Canadian institutional investors over reduced access to international dealers that trade foreign-currency-denominated fixed income securities issued by Canadian issuers.
| Aug. 26|| FSB|
More needed on OTC reforms
Reform of the over-the-counter derivatives markets in the wake of the global financial crisis remains a work in progress, according to a new report from the Financial Stability Board. The report finds that some jurisdictions are making progress, but more work is required in some areas, such as margin requirements for non-centrally cleared derivatives, and regulators’ access to trade data.
| Aug. 26|| OSC|
Relief from Fund Facts delivery
The Ontario Securities Commission granted relief from the Fund Facts delivery requirements to Mackenzie Financial Corp. and Quadrus Investment Services Ltd. under a program that switches investors from a regular retail fund series to high net-worth series that’s identical, apart from the fact that it carries lower fees, once the investors reach certain eligibility thresholds.
| Aug. 25|| IOSCO|
Good practices re investment fund fees
A report published on Thursday by the International Organization of Securities Commissions (IOSCO) aims to identify examples of good practice in the fees and expenses of collective investment schemes (CIS), such as mutual funds and hedge funds.
| Aug. 23|| IIROC|
Fees to rise this year
Investment dealers will see their regulatory costs and fees creep higher this year, according to the Investment Industry Regulatory Organization of Canada. IIROC published its latest annual report, which included its financial forecasts.
| Aug. 22|| CSA|
Impact of point of sale, CRM2
The Canadian Securities Administrators launched a new multi-year research project to measure the impact of phase 2 of the client relationship model (CRM2) and the point of sale (POS) amendments, which were fully implemented this year. The project isn’t slated to be completed until 2021, based on data collected from 2016 to 2019.
| Aug. 17|| OSFI|
Deadline extended for Basel III disclosure of capital adequacy
The Office of the Superintendent of Financial Institutions pushed back the implementation of new disclosure requirements under the Basel III capital adequacy regime for the domestic systemically important banks (D-SIBs) from the end of fiscal 2017 until the end of fiscal 2018 (which is Oct. 31 for the big six banks).
| Aug. 12|| BCBS|
New guidance on public disclosure of capital adequacy
Global banking regulators published new guidance on Friday on the details of the public disclosure that banks must make under the capital adequacy regime, known as Basel III.
| Aug. 8|| ASIC|
Australia begins enforcing new reforms
The Australian Securities and Investments Commission reports it has taken action against firms and advisors that have failed to comply with reforms to improve the quality of advice, including acting in the best interests of clients, which were introduced in 2013. The ASIC report says 24 actions were taken in the first six months of 2016.
| July 26|| ASC|
Capital raising rules eased in Alberta
The Alberta Securities Commission adopted ASC Rule 45-517 Prospectus Exemption for Start-up Businesses. It also announced multilateral instrument, MI 45-108 Crowdfunding, that will allow somewhat larger crowdfunding amounts to be raised across Canada. The crowdfunding initiative is out for a 30-day comment period.
| July 22|| CMRA|
New timelines for CMRA
British Columbia, Ontario, Saskatchewan, New Brunswick, Prince Edward Island, Yukon and the federal finance minister are aiming to get the required federal and provincial legislation passed by June 30, 2018, for implementing the Capital Markets Regulatory Authority.
| July 22|| OSFI|
Banks face shadow banking, fintech risks
The Office of the Superintendent of Financial Institutions should be paying more attention to possible risks in the emerging fintech sector and among shadow banks, says a report on a consultation with top bank executives.
| July 21|| OSC|
Ontario to review compensation practices
Sales incentives and compensation practices are coming under greater scrutiny in the year ahead, according to a report from the Ontario Securities Commission. Upcoming compliance reviews “will focus on high-risk firms, conflicts of interest relating to sales incentives and compensation practices, and compliance with new regulatory requirements,” the report says.
| July 19|| ESMA|
EU fund passports to non-EU countries
There are no major obstacles to granting access to the European Union’s passport system for alternative fund managers in Canada, and several other countries, the European Securities and Markets Authority said.
| July 18|| FCA|
Disclosure has little effect on consumers
Consumers pay relatively little attention to enhanced disclosure, even when it prompts them to take action that would produce “non-trivial” financial gains, says new research from the United Kingdom.
| July 14|| OSC|
Ontario whistleblower program launches
The Ontario Securities Commission launched the Office of the Whistleblower, with a dedicated website (www.officeofthewhistleblower.ca), and the publication of the regulator’s final policy implementing the new program.
| July 13|| NZ|
Extended new regulation of advisors
Policymakers in New Zealand have proposed measures designed to ensure advisors put clients’ interests first, and to facilitate innovations such as robo-advice. The proposals follow a report from the country’s Ministry of Business, Innovation and Employment.
| July 7|| CSA|
New three-year business plan maintains investor protection focus
The Canadian Securities Administrators released its business plan for the period from April 1, 2016 to March 31, 2019. It noted that many of its upcoming initiatives are related to activities that it pursued in the previous three-year period, from April 2013 to June 2016.
| July 7|| OSFI|
Increased scrutiny of mortgage lenders
The Office of the Superintendent of Financial Institutions sent a letter to all federally regulated financial institutions telling them it’s stepping up scrutiny of mortgage lending amid concerns about rising home prices and the consequences for lenders if the economy weakens.
| July 6|| CSA|
Highlights of business plan achievements
The Canadian Securities Administrators released a report on the work achieved under its three-year business plan for the period of April 1, 2013 through June 30, 2016. Areas noted include: retail investor protection; capital raising by small and medium sized enterprises and exempt market initiatives; shareholder democracy and protection; market regulation; enforcement effectiveness; and information technology.
| June 29|| IOSCO|
New guidance on cyber resilience
The International Organization of Securities Commissions and the Committee on Payments and Market Infrastructures (CPMI) released guidance on cyber resilience for financial market infrastructures (FMIs), which they say represents the first-ever edition of internationally agreed guidance for the financial sector.
| June 28|| IOSCO|
Canada’s implementation of global principles gets nod
Canadian policymakers have largely implemented the global principles designed to ensure the stability of financial market infrastructures, such as central counterparties, clearing firms and trade repositories. That is one of the findings of a report from the International Organization of Securities Commissions.
| June 27|| OSFI|
Recovering the costs of overseeing PRPPs
The Office of the Superintendent of Financial Institutions is proposing regulatory amendments to pension rules that will enable the federal regulator to fund the oversight of pooled registered pension plans.
| June 20|| IIROC/|
MOU signed to fill gaps in consumer protection
The Investment Industry Regulatory Organization of Canada signed a memorandum of understanding (MOU) with the Insurance Council of British Columbia to bolster enforcement, and reduce gaps in consumer protection.
| June 20|| CSA|
List of protected, unprotected markets published
The Canadian Securities Administrators published a staff notice detailing the markets that will no longer be considered protected under the revised order protection rule (OPR). The OPR aims to prevent “trade-throughs” by requiring orders to execute against best-priced orders.
| June 10|| IIAC|
Response to best interest standard initiative
The Investment Industry Association of Canada laid out its priorities for the year, led by plans to argue against a best interest standard for advisors.
| June 9|| OSC|
Ontario prioritizes best interest standard
The Ontario Securities Commission signaled that it is prepared to go it alone to address the question of a new best interest standard.
| June 7|| IOSCO|
Non-GAAP accounting measures and investors
The International Organization of Securities Commissions released new guidance to help issuers provide disclosure to investors when using financial measures that don’t follow generally accepted accounting principles (GAAP).
Solicitor-client privilege and tax information
The Supreme Court of Canada found that an exception to solicitor-client privilege in the Income Tax Act, used by tax officials to gather information about taxpayers from their lawyers and, in Quebec, their notaries, is unconstitutional.
| May 31|
Update on most frequently asked questions
The Investment Industry Regulatory Organization of Canada published its updated Frequently Asked Questions document on certain aspects of the Client Relationship Model, Phase 2, slated to take effect on July 15.
| May 31|| IOSCO|
More firms using independent audit committees
The responsibility of audit committees to ensure that auditors at public companies are independent continues to grow, according to new research from the Board of the International Organization of Securities Commissions.
| May 31|| IIROC|
Seniors, new guidance published
The Investment Industry Regulatory Organization of Canada published new guidance on specific compliance and supervisory issues that may arise for firms in their dealings with senior clients.
| May 31|| CSA|
Databases to be harmonized and integrated
The Canadian Securities Administrators has an agreement with CGI Information Systems and Management Consultants Inc. (CGI) to renew CSA national systems. CGI will assume responsibility for preparing, running and maintaining a single integrated system to replace SEDAR, SEDI, NRD, the cease-trade order database, and the national registration search and discipline list.
| May 26|| IIROC|| Strategic plan for coming year|
The Investment Industry Regulatory Organization of Canadapublished its new, three-year strategic plan on which sets out its regulatory vision through fiscal 2019 (ending March 31, 2019) and a list of its regulatory priorities for the year ahead. The overarching plan is to become more efficient and effective in a variety of ways from supervision to enforcement, while also engaging more directly with investors in the process of to policy development.
| May 24|| FXWG|| First phase, global code, currency markets|
The first phase of the global code of conduct for the foreign exchange (FX) market and principles for adherence to the new standards were released by the Foreign Exchange Working Group. The code sets out principles for FX market participants in the areas of ethics, trade execution, information sharing, confirmation and settlement. The FXWG aims to have the complete code developed by May 2017.
| May 24|| CFTC|| Final cross-border margin rule issued|
The U.S. Commodity Futures Trading Commission adopted a rule implementing a cross-border approach to the CFTC’s margin requirements for uncleared swaps.The final rule would allow swaps dealers to comply with comparable margin requirements in a foreign jurisdiction as an alternative to complying with the CFTC’s margin rule for uncleared swaps, provided that the CFTC determines that the foreign requirements are comparable.
| May 19|| MFDA|
The Mutual Fund Dealers Association of Canada published a new bulletin to help mutual fund dealers address their cybersecurity.
| May 16|| FINRA|
Crowdfunding rules take effect
Small companies in the United States can now raise funds from ordinary retail investors through online portals, as new equity crowdfunding rules take effect.
| May 12|| IOSCO|
Bolstering co-operative enforcement
Global securities regulators are seeking to bolster their co-operative enforcement arrangements to allow the sharing of phone records and Internet service provider (ISP) information, among other things.
| May 11|
Navigating delivery of Fund Facts
As of May 30, the two-page, double-sided Fund Facts document will have to be delivered to clients before they purchase a mutual fund. The question in many advisors’ minds is likely to be: how is delivery accomplished? And what are the exceptions?
| May 10|| IIROC|
Deadline for unwinding personal financial dealings with clients
When securities regulators finalize proposed rule changes on reps’ personal financial dealings with clients, firms will have 180 days to unwind any existing arrangements that are offside under the new rules.
| May 10|| MFDA/|
Extending mutual fund regulation to other products
After more than a decade of wrestling with how to structure and phase in Fund Facts and the new point of sale regime for mutual funds, regulators are determined to extend these consumer protection principles to other types of investments.
| May 6|| FINRA|
Inducing emotion increases vulnerability to fraud
Inducing emotions in older adults increases their vulnerability to phony sales pitches, suggests research by psychologists at Stanford University. With funding from the FINRA Investor Education Foundation and the AARP Fraud Watch Network, the researchers used laboratory experiments to examine whether inducing excitement and anger impacts susceptibility to fraud.
| May 5|| BoC|
Update on financial market infrastructure oversight
Canada’s payment, clearing and settlements systems are enhancing risk management, but there’s still work to be done, according to a report from the Bank of Canada.
| May 4|
Sharing enforcement information
The Financial Planning Standards Council and the Insurance Council of British Columbia have signed a memorandum of understanding to share information about their enforcement efforts.
| Apr. 27|| MFDA|
Sale of ETFs permitted, with conditions
The Mutual Fund Dealers Association of Canada will not stand in the way of financial advisors and member dealer firms who want to sell exchange-traded funds, so long as they meet the necessary requirements.
| Apr. 25|| MFDA|
Reciprocal disciplinary standards
The Mutual Fund Dealers Association of Canada will be placing a heavier emphasis on reciprocal disciplinary standards for dual-licensed advisors who sell mutual fund and insurance.
| Apr. 25|| IIROC|
Mediation program announced
The Investment Industry Regulatory Organization of Canada is launching a mediation program for members facing disciplinary action, the self-regulatory organization announced on Monday. IIROC’s enforcement department will be introducing the program effective immediately.
| Apr. 21|| CSA|
Corporate bond market transparency
The Canadian Securities Administrators published a staff notice confirming that it’s proceeding with plans to have the Investment Industry Regulatory Organization of Canada serve as information processor for bond trading information.
| Apr. 21|| CFTC|
Cross border derivatives agreement
The U.S. Commodity Futures Trading Commission announced it has signed counterparts to a 2014 memorandum of understanding with regulators from New Brunswick, Nova Scotia, and Saskatchewan, to enhance co-operation and improve the exchange of information between the jurisdictions.
| Apr. 20|| MFDA|
Reps move closer to selling ETFs
The Mutual Fund Dealers Association of Canada will issue proficiency standards sometime this year to allow mutual fund advisors to sell exchange-traded funds.
| Apr. 20|| OSC/|
Investor panel calls for best interest test
The Ontario Securities Commission’s Investor Advisory Panel reiterated its call on Wednesday for regulators to move beyond consultation to action on a variety of investor protection issues, including the adoption of a best interests standard for advisors.
| Apr. 18|| Privacy|
Sweep of health monitoring devices
Canada’s privacy commissioner, in co-ordination with the Global Privacy Enforcement Network, in early April conducted a sweep of health devices that track a user’s physical activities and responses. Among other issues, the OPC identified an individual’s insurability as a primary concern. A Toronto law firm has a comment on the issue.
| Apr. 19|| FINRA|
Pension stream products
The U.S. Financial Industry Regulatory Authority is warning brokerage firms about investor protection issues that arise in transactions that involve pensioners selling their income streams to investors in exchange for an upfront lump sum payment.
| Apr. 18|| FCA|
Crackdown on inducements
The U.K. Financial Conduct Authority is cracking down on industry junkets and other sorts of conflict-creating inducements that can impact retail investment advice.
| Apr. 14|| CSA|
The Canadian Securities Administrators published new guidance with three months to go until the remaining requirements under the second phase of the client relationship model (CRM2) take effect. The final set of rules include major initiatives, such as new reporting on fund fees, costs and performance.
| Apr. 13|| OSFI|
International capital standards for P&C
New global capital standards likely won’t have much immediate impact on Canada’s property & casualty insurers, says Mark Zelmer, deputy superintendent at the Office of the Superintendent of Financial Institutions. New global capital rules for the insurance business are similar to the framework in place for large, global banks.
| Apr. 7|| OBSI/JRC|
Joint regulators committee monitoring firm refusals
Securities regulators that oversee the Ombudsman for Banking Services and Investments are monitoring firms’ refusals to follow compensation recommendations from OBSI but aren’t promising to take action.
| Apr. 6.|| IIROC|
More oversight of compensation-driven conflicts sought
The Investment Industry Regulatory Organization of Canada issued a notice to dealers saying it believes regulatory action is needed to raise conduct standards for investment firms and protect clients. IIROC is stepping up compliance attention on compensation-driven conflicts, including commission grids.
| Apr. 6|| US DOL|
Final version of fiduciary rule issued
The U.S. Department of Labor issued the final version of its proposed fiduciary duty rule on retirement advice, due to take effect in 2017.
| Apr. 1|| FSB|
Systemic risk and asset management
The Financial Stability Board will propose recommendations by mid-year to deal with the systemic risks posed by asset management activities. It also intends to launch a public consultation in mid-2016 on policy recommendations to address structural vulnerabilities from asset management activities.
| Mar. 31|| CSA|
Aligning interests of advisors and clients
The Canadian Securities Administrators will propose reforms in April that may fundamentally alter the retail investment business by seeking to improve outcomes for retail investors, and better aligning the interests of the investment industry with its clients. The proposals will be out for a 120-day comment period.
| Mar. 30|| IIROC/|
Regulators to share discipline information
The Investment Industry Regulatory Organization and the Financial Services Commission of Ontario signed a memorandum of understanding that facilitates information sharing between the regulators. It will also see disciplinary decisions by one regulator trigger a review of a disciplined rep’s activities by the other regulator.
| Mar. 30|| CCIR|
New disclosure for seg funds
Insurance regulators are considering new disclosure requirements for segregated funds to avoid any potential regulatory arbitrage between seg funds and mutual funds, according to the Canadian Council of Insurance Regulators.
| Mar. 30|| ASIC|
Industry culture a concern in Australia
The provision of poor advice to retail investors, and compliance with reforms that banned conflicted compensation structures and imposed higher conduct standards, remain key concerns for the Australian Securities and Investments Commission.
Alberta won’t back national securities regulator
Alberta’s NDP government said it will not sign on to a national securities regulator because the province’s economy is “unique.”
| Mar. 28|| MFDA|
Issues with audits
The Mutual Fund Dealers Association of Canada found issues with the work of external auditors that are overseeing dealers’ books, the SRO said. An MFDA bulletin sets out the deficiencies uncovered in the SRO’s review of the working papers of auditors that examine the books of fund dealers.
| Mar. 23|| CSA|
Investor caution issued re online binary options trading
The Canadian Securities Administrators reinforced its cautionary message to investors who use their credit cards to access binary options trading platforms online.
| Mar. 23|| TSXV|
TSX Venture exchange adjusts revitalization
Improving filing procedures and addressing concerns around short-selling rules are among the changes necessary to revitalize the TSX Venture Exchange, according to feedback the exchange has received from stakeholders.
| Mar. 16|| AMF|
Insider trading top priority
Detecting and deterring illegal insider trading has become a top priority for the Autorité des marchés financiers (AMF), the Quebec securities regulator said Wednesday, as it outlined its recent enforcement performance.
| Mar. 15|| FINRA|
Guidance on robo-advisors
The U.S. Financial Industry Regulatory Authority issued a new report that offers guidance and spells out best practices for firms using digital investment advice tools, such as robo-advisors.
| Mar. 14|| FCA|
U.K. report on financial advice after commission ban
The U.K. Financial Conduct Authority published a final report from the Financial Advice Market Review (FAMR) that reassessed the market for financial advice in the U.K. following the ban on embedded commissions.
| Mar. 11|| IIROC|
Some firms exempt from reporting off-book positions
Several dozen firms have received exemptions from the requirement to include off-book positions in their annual performance reporting to clients, according to an Investment Industry Regulatory Organization of Canada notice published on Friday.
| Mar. 7|| OPC|
Privacy impact assessments
The Office of the Privacy Commissioner of Canada published a new list of guidelines for avoiding complaints to the OPC.
| Mar. 3|| CSA/|
Enforcement issues at IIROC flagged
The Investment Industry Regulatory Organization of Canada must make changes to its enforcement processes, according to the latest oversight review by the Canadian Securities Administrators. The CSA also reports that IIROC may be facing a new class action lawsuit in connection with the loss of a laptop computer containing clients’ personal information in 2013.
| Mar. 2|| IOSCO|
Mistreatment of retail clients flagged
The International Organization of Securities Commissions flagged misconduct in the retail investment business as one of the key threats to global financial markets in the year ahead in its latest market risk outlook.
| Mar. 1|| Finance|
Audit calls for more focus on emerging risks
An internal audit of the federal Department of Finance Canada’s policy arm calls on the branch to focus more on emerging risks and opportunities for financial sector innovation.
| Feb. 25|| MFDA/|
Help with point of sale, coming May 30
The Mutual Fund Dealers Association of Canada (MFDA) and the Investment Funds Institute of Canada (IFIC) have jointly published an insert that mutual fund dealers can use explain to investors the move to pre-sale disclosure.
| Feb. 22|| BCSC|
Investor caution issued
The British Columbia Securities Commission highlighted the findings of a study it commissioned last year showing many clients don’t do their own due diligence when it comes to investing, nor do they read their account statements, relying instead on their advisors.
| Feb. 19|| OSC|
Mortgage brokers, registration requirements for trading
The Ontario Securities Commission called on participants in the mortgage market to ensure they are registered if they intend to trade mortgage securities.
| Feb. 18|| IIROC|
Suitability, robo-advisors top priorities
Suitability, social media and robo-advisors all feature prominently in the Investment Industry Regulatory Organization of Canada’s compliance plans for the year ahead.
| Feb. 18|| OSC|
Corporate insiders and issuers need to do a much better job of reporting insider-trading activity and must improve their policies to prevent improper insider trading, according to a new review from the Ontario Securities Commission.
| Feb. 16|| SEC|
Education on crowdfunding
The U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy issued a bulletin to educate investors about the arrival of securities-based crowdfunding on May 16.
| Feb. 11|| IIROC|
Proposal for introducing brokers dropped
The Investment Industry Regulatory Organization of Canada is not going ahead with a proposal that would have adopted lower minimum capital requirements for Type 1 and Type 2 introducing brokers because of lack of support for the idea among the investment industry.
| Feb. 9|| CSA|
Cummings report conclusions expanded
The Canadian Securities Administrators published responses to questions received by the authors of the Cummings report on mutual fund fees.
| Feb. 5|| Finance|
Financial information to be shared
The Canadian government announced it has signed a pledge with Switzerland that will see the two countries automatically share financial account information by 2018.
| Feb. 4.|| Basel Ctte.|
Anti-money laundering guidelines expanding
European regulators issued a final revised version of the General guide to account opening in a bid to step up the industry’s anti-money laundering (AML) and terrorist financing defences.
| Jan. 29|| BoC|
Higher target for daily settlement balances
The Bank of Canada raised its target for daily settlement balances to relieve signs of stress in the overnight money market. The BoC is increasing the target for the minimum daily level of settlement balances to $500 million from its current level of $150 million.
| Jan. 28|| CSA/OSC|
Updates on exempt market issued
The Canadian Securities Administrators and the Ontario Securities Commission published separate notices to make it easier for investors and the industry to absorb the latest developments in the exempt market.
| Jan. 22|| CSA|
Harmonization of derivatives reporting
Securities regulators in Alberta, B.C., N.B., Newfoundland and Labrador, N.W.T., N.S., Nunavut, P.E.I., Saskatchewan and Yukon will implement new rules on derivatives reporting.
| Jan.14|| MFDA|
Review of sales incentives
The Mutual Fund Dealers Association of Canada will be carrying out a review in 2016 along with other securities regulators that will look at sales incentives and situations in which incentives could spark conflicts of interest for dealers and their representatives.
| Jan. 13|| MFDA|
Regulation of financial planner title
The Mutual Fund Dealers Association of Canada will move ahead with plans to regulate mutual fund dealer representatives’ use of the “financial planner” title.
| Jan. 12|| OSFI|
Revised bank capital requirements
The forthcoming changes to bank capital requirements to account for their exposure to Canada’s frothy housing markets will be based on housing prices, debt levels, and geography, according to a top banking regulator.