WHAT’S NEW WITH THE CAC?

Advancing investor protection, industry professionalism, and market integrity across Canada, the CAC works to focus attention on pressing advocacy files dominating the regulatory agenda. Ensuring fair, equitable, and sustainable outcomes for stakeholders is more important than ever, and through our growing relationships with policymakers and regulators, we are working on several important initiatives. Below is a summary of two areas where we have recently provided comment letters to consultation processes. To see the comprehensive catalogue of our commentary letters, visit us online a cfacanada.org/advocacy.

Published Canadian Advocacy Council of CFA Societies Canada (the “CAC”) comment letters

Finance Ontario – New Regulation made under section 19(2)(b)(iii) and 36 (0.1) of the Securities Commission Act, 2021 that prescribes additional purposes for which the Ontario Securities Commission (the “Commission”) can use enforcement money (the “Proposal”)

While we are receptive to the idea that new purposes may need to be added to make greater use of excess funds collected through the Commission’s enforcement efforts—now totalling over $120 million—we have not seen a compelling case to demonstrate that improvements cannot be made to better fund existing core purposes at greater scale. In the event an expansion of permitted purposes is deemed necessary, this should come with prescribed guidelines prioritizing accountability, transparency, and a requirement to ensure that funds are used to promote the interests of investors and market integrity.

CIRO – Proposed Proficiency Model – Approved Persons under the Investment Dealer and Partially Consolidated Rules (the “Consultation”)

We are open to supporting the model proposed in the Consultation to the extent that it aligns with the US model adopted by the Financial Industry Regulatory Authority (FINRA) and the requirement for exam takers to have a sponsoring firm. We have concerns that many of the specific details of the operational and governance structures (which were not provided for review and comment) surrounding the proposed proficiency model are where potential issues may arise. As such, we would welcome further information for review and comment, including more explicit details on the content, structure, and standards to which candidates will be held, the level of transparency that will be provided on the operation and governance of the model, exam content, and examination standards.

HAVE YOUR SAY

If you would like to participate in advocacy activity related to these letters or future policy and regulatory initiatives, provide comments on ongoing initiatives, or learn more about volunteer opportunities in advocacy or as a part of the CAC, please contact cac@cfacanada.org.

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WHO IS THE CANADIAN ADVOCACY COUNCIL?

The Canadian Advocacy Council (CAC) is a volunteer advocacy council of CFA Societies Canada, representing the twelve Canadian CFA Institute Member Societies and, ultimately, Canadian CFA charterholders. The council includes investment professionals from across the country who review regulatory, legislative, and standard-setting developments affecting investors, investment professionals, and Canadian capital markets. The CAC strives to advance market integrity, transparency, and investor protection, and actively engages Canada’s securities regulators, self-regulatory organizations, industry associations, legislators, and other stakeholders through thoughtful leadership, direct engagement, and the publication of comment letters.