Proposed delegation promises to harmonize processes, pending approval, and reduce regulatory burdens across Canada
The Canadian Securities Administrators (CSA) announced plans to explore delegating specific registration functions and powers to the Canadian Investment Regulatory Organization (CIRO).
Currently, CIRO handles certain registration tasks for some CSA members, and this proposed delegation would standardize registration processes for CIRO members across Canada.
The delegation model under consideration may be limited to routine applications for investment dealers and mutual fund dealers, both firms and individuals, in certain jurisdictions.
Local securities regulators would continue registering and overseeing portfolio managers, restricted portfolio managers, investment fund managers, exempt market dealers, restricted dealers, and scholarship plan dealers.
Aligned with the CSA's 2022-2025 Business Plan, this initiative aims to enhance efficiency and reduce regulatory burdens. A centralized registration process would enable CSA members to focus on oversight of CIRO, regulatory policy, novel issues, and exemptive relief applications.
Stan Magidson, CSA chair and chair of the Alberta Securities Commission, stated, “Today's announcement marks a natural progression of efforts to modernize the Canadian self-regulatory framework.
Magidson continued, “We expect this initiative would benefit market participants through a more streamlined process and allow regulators to prioritize policy developments that continue to foster healthy, fair and efficient markets.”
Andrew Kriegler, president and CEO of CIRO, welcomed the potential delegation, emphasizing its alignment with CIRO's strategic objectives.
“As CIRO continues to deliver on its strategic plan, I look forward to further collaborating with the CSA to improve registration standards across Canada,” Kriegler said. “We will work with CSA members that decide to delegate, under their respective timelines, to support a smooth delegation process.”
Necessary approvals would be obtained locally by CSA members, with delegation orders or proposed rule amendments issued in due course.
The Ontario Securities Commission (OSC) issued a separate announcement regarding its plans on this matter.
