Toronto CFA Society and the Canadian Advocacy Council (CAC) of CFA Institute work independently to advocate on behalf of their members. With regulators from all over the world inviting CFA charterholders to become actively involved in reforming the regulatory framework that governs the securities and banking industries, such advocacy has become one of the central roles undertaken by these two professional bodies.

Toronto CFA Society activity
Peter Rusheleau, CFA

The External Relations and Advocacy Committee represents the interests of the society in part through its membership in CFA Institute’s Canadian Advocacy Council. It also helps raise awareness of Toronto CFA Society and the CFA charter by cosponsoring events on good governance and regulatory oversight of the capital markets with outside professional organizations. Internally, the committee schedules luncheons and workshops to educate society members on key regulatory and governance issues.

Over the past two years, the committee has dedicated much of its efforts to regulatory issues. It organized a series of events in 2009 focused around the topic of the need for a single regulator for the Canadian securities market. Other regulatory events hosted in 2009 included a presentation by Dr. Laura Kodres, from the Monetary and Capital Markets Department of the IMF, updating members on the IMF’s role in the future of global financial regulation. Also, as part of CFA Institute’s efforts to raise the bar to a higher level, the society sponsored an event on Global Investment Performance Standards (“GIPS”). On 24 February 2010, Doug Hyndman, chair and CEO of the Canadian Securities Transition Office, presented on the roadmap to a single securities market regulator.

Canadian Advocacy Council activity
Ross Hallett, CFA

As the name implies, the Canadian Advocacy Council for Canadian CFA Institute Societies (CAC) represents the interests of CFA Institute societies across the country. (It is funded by all Canadian societies and The CFA Centre for Financial Market Integrity). In deciding whether to undertake a particular initiative, some of the key factors the CAC considers include:

• How important is the issue to Canadian CFA charterholders?
• Is it consistent with the CFA Institute Code of Ethics and Standards of Professional Conduct?
• What are the potential implications for the investment profession across major capital markets?
• Is it an opportunity to take the lead in the public in a debate on current and emerging policy issues and to significantly and positively influence the outcome?
• Is it an opportunity to address issues of investor protection or transparency of disclosure or to advance the policies of The CFA Centre for Financial Market Integrity?
• Is it relevant to CFA Institute’s mission, vision, and goals?
• How important is the issue in light of current and developing market conditions, legislation, regulations, or actions by standard-setting bodies?
• Would it reflect favourably on the profile of CFA Institute, the CFA Examination Program, and CFA Institute members and charterholders?

Recent CAC initiatives

Canadian Member Single Regulator survey: The CAC released the Canadian Member Single Regulator Survey on 20 October 2009. A total of 92 percent of CFA survey respondents expressed a desire for change in how the Canadian securities markets are regulated, with 75 percent calling for a single market regulator. Additionally, 73 percent of respondents had a preference for the regulatory framework to be based on a combination of both principles and rules. This differs from Ottawa’s position, which favours a principle-based model. The CAC distributed both the press release and its accompanying discussion paper of the survey results to all of the chairs of the various security regulatory commissions in Canada, their respective finance ministers, and to the federal government. International Financial Reporting Standards (IFRS): PricewaterhouseCoopers released a joint PWC-CAC survey concerning IFRS and member readiness on 22 October 2009. The CAC continues to work with the Canadian Securities Administrators, individual regulators, and the Accounting Standards Board on a variety of topics related to IFRS implementation.

For more information about the CAC, contact Ross Hallett at chair@cfaadvocacy.ca. Comment letters produced by the CAC are available at www.cfaadvocacy.ca.