For Investment Executive‘s (IE) 11th annual Regulators’ Report Card, compliance officers (COs) and company executives shared their views on Canada’s two national self-regulatory organizations and four of the country’s provincial regulators. They also discussed wider industry trends that affect their firms.
IE research journalist Bryson Masse spoke with 81 respondents from across Canada and the industry. Those who worked at firms registered with the Investment Industry Regulatory Organization of Canada and/or the Mutual Fund Dealers’ Association of Canada rated the SROs they work with, as well as the provincial regulators with which they’ve had direct dealings.
Survey participants who work only with provincial securities commissions, including executives who work at investment managers, asset management companies, exempt-market dealers and independent portfolio managers, provided their views on the commissions with which they work most closely.
The core survey questions remained the same as last year’s. To reflect the shift in the industry toward technological innovation and digital wealth solutions, we spoke to COs and executives from Canada’s fintech firms for the first time. (See Watchdogs respond to rise of fintech.)
We also updated the two supplementary questions. The first looked at which issue COs and company executives thought was the biggest threat to their firms’ revenue for the coming year. The six options were: the shift from passive to active management; price competition in the industry; the rise of fintech; regulation; internal firm issues; or other.
The second question asked how watchdogs can best seek to reduce firms’ regulatory burdens, with the seven options including (but not limited to): streamlining conduct regulation; reforming product regulation; and rationalizing the regulatory framework through, for example, the creation of a national securities body. (See Reducing the burden by culling the herd.)