Small and medium firms are struggling to keep up with regulatory changes.
In fact, Toronto-based Fraser Mackenzie Holdings left IIROC earlier this year, partly because rising regulatory fees and changes are continuing to pressure advisors while they’re fighting to deliver returns.
And the burden won’t let up soon. So, IIAC recently compiled a list of more than 100 current regulatory proposals and papers that are being implemented or commented on. It includes changes introduced since 2008 by both CSA and IIROC, given firms may still be integrating them into advisors’ workflows.
Here’s a look at 5 items on that list:
Released: October 25, 2012
Comment period ended: February 22, 2013
Focuses on: The paper explores the potential benefits and competing considerations of introducing a statutory fiduciary or best interest standard for advisors and dealers when they provide advice to retail clients. Since the comment period, there have been two roundtables, as well as a panel scheduled for July 23, 2013 to consolidate all comments made.
For more on the CSA paper, read:
- Can’t change fiduciary rules, yet: CEFTA
- CSA paper highlights ugly truth
- Regulation by product is a problem: CSA roundtable
- Can’t emphasize with clients? Get out of this business
- Fiduciary duty will raise costs: CSA roundtable
Released: October 25, 2012
Comment period ended: January 23, 2013
Focuses on: This proposal outlined the risk and supervisory policies, procedures and controls that must be put in place for dealers to manage the risks associated with electronic trading, including the use of algorithms and high frequency trading, said the CSA in its release. NI 23-103 was implemented on March 1, 2013. Read the OSC’s answers to FAQ about NI 23-103.
For more on electronic trading, read:
- IIROC studies impact of electronic trading
- Should regulator rein in high-speed traders?
- New systems will speed trading
Released: November 8, 2012
Comment period ended: February 8, 2013
Focuses on: Real-time market data plays a key role in Canada’s equity markets, as it provides insight into current prices, liquidity and trading activity, said the CSA in its release. So it’s considering whether it should address the fees charged for market data by individual marketplaces, as well as collectively by all Canadian marketplaces.
For more, read: CSA seeks comment on real-time market data fees
Released: November 15, 2012
Comment period ended: February 15, 2013
Focuses on: The CSA says a common dispute resolution service is essential for the securities industry. It adds OBSI is an appropriate choice, with CSA Chair Bill Rice saying in a release, “Mandating all registered dealers and advisers to offer dispute resolution services through OBSI will establish a level playing field in terms of expectations and costs.”
For more, read:
Released: December 14, 2012
Comment period ended: March 8, 2013 (Read comment letters)
Focuses on: The paper discussed the implementation of new prospectus exemptions in Ontario. The OSC aims to facilitate capital raising in the exempt market, while continuing to deliver strong investor protection. The regulator proposes:
- an exemption to allow crowd funding, subject to limits for issuers and retail investors;
- an offering memorandum exemption;
- an exemption based on an investor’s investment knowledge; and
- an exemption based on an investor receiving advice from a registrant.
Next week, we’ll provide a list of 5 more current proposals and papers. Following that, we’ll also give you a peek at some of the newest slated for release.