KEY INITIATIVES
ENFORCEMENT
> More powers for the Ombudsman for Banking Services and Investments (OBSI)?
Two recent reviews have recommended that OBSI be given the power to enforce financial penalties. Currently, OBSI may only make recommendations and “name and shame” firms. The proposals coincide with an increase in complaints to OBSI in 2016. Read: JRC to look at expanding OBSI’s powers
> Social media warning from the Canadian Securities Administrators (CSA)
Securities regulators have cautioned against using social media to reveal material information without general disclosure and proper context. Large moves in stock prices following disclosures on social media platforms such as Twitter — without wider disclosure — may have hurt some investors, the CSA said. It is “critical,” the CSA said, for issuers to adhere to “high-quality disclosure practices.” Read: Reckless use of social media harming investors: CSA
> Blockchain-based business models and registration
Regulators are ramping up warnings that alternate business forms, such as distributed-ledger technology (a.k.a. blockchain), may be “securities” and require registration. The Ontario Securities Commission recommends such firms consult with its new fintech arm, OSC LaunchPad. Read: Securities laws may apply to blockchain-based ventures, OSC warns
> Marketing spam
Canada’s anti-spam law (CASL) is beginning to generate more decisions from the Canadian Radio-television and Telecommunications Commission, providing practical guidance for businesses that send electronic marketing material. Read: CRTC case offers guidance to advisors on CASL compliance
PROFESSIONAL STANDARDS AND INVESTOR PROTECTION
> Ontario Securities Commission (OSC) draft priorities, 2017-18
The OSC’s annual list of priorities includes: easing the regulatory burden; incentive structures; investor redress; connecting with whistleblowers; and fintech. The OSC will also be continuing its consideration of a best interest standard and a ban on embedded commissions for mutual funds. The deadline to comment on the draft is May 23. Read: OSC to explore ways to reduce regulatory burden
> Ontario backs new credentials, title restrictions for advisors and financial planners
Charles Sousa, Ontario’s minister of finance, announced that the province will “develop and deliver” measures responding to the Expert Committee to Consider Financial Advisory and Financial Planning Policy Alternatives’ calls for more oversight of financial advisors and financial planners, particularly new credentialing. However, the province stopped short of endorsing the Expert Committee’s call for a best interest standard. Read: Province in favour of Expert Committee’s proposed rules for advisors, financial planners
> Explaining CRM2 statements, online help
The Canadian Foundation for the Advancement of Investor Rights (a.k.a. FAIR Canada) has posted a video series on its website that breaks down and explains the elements of the new client statements. Visit: Understanding Your Statements (CRM2)
ESTATES
> Ontario’s power of attorney, capacity laws may be updated
The Law Commission of Ontario made 58 recommendations dealing with a wide-ranging overhaul of power of attorney, capacity and guardianship rules. Among them, the Law Commission called for the creation of a new role, a “monitor,” who can communicate directly with the attorney to review how the powers are being carried out. The Law Commission also called for a new tribunal to oversee this area. Read: Law Commission of Ontario proposes new rules relating to POAs
TAXES
> Principal residence, tax breaks
The Canada Revenue Agency (CRA) is boosting supervision of tax benefits related to home ownership as concerns are increasing that many homes are being bought and sold for profit. Read: CRA increasing scrutiny related to homeowner tax benefits
> New compliance guidance for CRS/FATCA
The CRA has posted updated guidance that attempts to streamline and harmonize, where possible, compliance requirements associated with implementing both the CRS and FATCA. Read: CRA publishes new compliance guidance for CRS, FATCA
> Changes to corporate-class funds
This year’s federal budget proposes to allow mutual funds organized as corporations (corporate-class funds) to convert to trusts on a deferred tax basis. Read: Feds to extend rules governing mutual fund mergers
KEY DEADLINES
> OTC derivatives
New rules relating to mandatory central party clearing and customer clearing take effect on April 4 and July 3. Read: CSA introduces proposed rules for OTC derivatives markets
> Trading fee caps
The key dates for the CSA’s new cuts to domestic stock trading fees are April 10, May 15 and July 3. Rules also affect interlisted stocks. Read: CSA cuts trading fee on domestic securities
> OSC seeks Investor Advisory Panel members
The application deadline for new members who wish to join the OSC’s Investor Advisory Panel is April 28. Read: OSC seeks new members for IAP
For more details on particular entries, visit IE‘s Compliance Calendar.