CSA Proposes To Create A New Self-Regulatory Organization To Replace IIROC And MFDA

The Canadian Securities Administrators (CSA) are proposing to create a single new self-regulatory organization (New SRO) which will consolidate the current functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). The New SRO may take on additional regulatory responsibilities over time.

The proposal is described in a recent CSA Position Paper (the Paper) which follows consultations conducted by the CSA last year on the question of SRO reform. Comments on the Paper may be submitted by October 4.

In the lead-up to last year's CSA consultations, both IIROC and the MFDA published their own proposals for SRO reform. The IIROC proposal envisioned a merger between IIROC and MFDA, while the MFDA proposal would have created a new SRO that would have overseen all registered firms, not just investment dealers and mutual fund dealers.