Self-regulation In Canada – Time For A Change In Changing Times?

Throughout the history of the securities industry in Canada, the industry itself has played a critical role in the regulation and oversight of the conduct of its members. For nearly 20 years, securities trading activities have been regulated by two industry-led self-regulatory organizations (SROs). These are the Investment Industry Regulatory Organization of Canada (IIROC), which oversees all investment dealers and trading activity on debt and equity markets in Canada, and the Mutual Fund Dealers Association of Canada (the MFDA), which is responsible for oversight of mutual fund dealers in Canada (except in Québec). Both IIROC and the MFDA are recognized as SROs and are overseen by the Canadian Securities Administrators (CSA) under applicable securities regulation. IIROC and its predecessor, the Investment Dealers Association of Canada, have been regulating investment dealers as a recognized SRO since 1995, although the IDA's origins and operations date back much