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The creation of a new self-regulatory organization took a major step forward, with the unveiling of the planned new SRO’s board and the launch of a consultation on certain essential aspects of the new regulator, including its interim rules.

The Canadian Securities Administrators (CSA) announced a proposed slate of directors for the new SRO that will be created by combining the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).

The proposed board, which will also include the new SRO’s CEO, features six industry directors and eight independent directors. The CEO will be named in the coming weeks, the CSA noted — reiterating that it would launch the new SRO by the end of the year.

“Work is well on track and we look forward to the December 31, 2022 closing,” said Louis Morisset, chair of the CSA and president and CEO of the Autorité des marchés financiers (AMF), in a release.

The roster of proposed industry directors includes: Patricia Callon, senior vice-president with Sun Life Financial; Debra Doucette, president and CEO of Odlum Brown; Luc Fortin, president and CEO of the Montréal Exchange and global head of trading at TMX Group; Robert Frances, chairman and CEO of Peak Financial Group; Michelle Khalili, managing director with Scotiabank; and Timothy Mills, senior vice-president with CIBC.

Independent director Tim Hodgson, the current chair of Hydro One and a former financial services executive, will chair the new SRO’s board.

Several of the other independent directors also have backgrounds in the financial sector, including Louis Marcotte, executive vice-president and group CFO with Intact Financial Corp.; Philip Mayers, senior vice-president and CFO with Sagen MI Canada; Jennifer Newman, former senior managing director with the Ontario Teachers’ Pension Plan; and Laura Tamblyn Watts, CEO of CanAge.

The other independent directors are Kathryn Chisholm, senior vice-president with Capital Power Corp.; Miranda Hubbs, a corporate director; and Janet Woodruff, a director for several companies and organizations, including the MFDA.

The board appointments will take effect on Jan. 1, 2023.

The proposed appointments, which were approved by the boards of IIROC and the MFDA, were recommended by a special joint committee comprising the existing SROs’ directors and some independent members.

The CSA also unveiled a planned board for the new investor protection fund (IFP) that would be created by the merger of the existing SRO protection funds, which includes select directors from the existing funds.

“The board members reflect a broad range of background and experience that will help the new SRO to succeed in its mission,” said Stan Magidson, chair and CEO of the Alberta Securities Commission and chair of the CSA’s SRO working group.

At the same time, the CSA published a series of documents for comment, including a draft set of interim rules, and a draft recognition order for the new SRO. The deadline for comments is June 27.

“Today’s announcement of the new boards and publication of draft documents marks a major milestone toward our goal of creating a new SRO and IPF that serves a clear public interest mandate, better protects investors and promotes public confidence,” Morisset said.

The CSA’s goals for the new SRO and protection fund include “ensuring stronger accountability to Canadian securities regulators, formal mechanisms for engaging with investors, and improved investor access to advice by providing an opportunity for coordinated arrangements between mutual fund dealers and investment dealers,” Morisset added.

The AMF has also published its proposed transition plan for mutual fund dealers and their reps in Quebec.