The MFDA and IIROC Amalgamation
January 1, 2023
MFDA and IIROC approved a merger of the two organizations on September 29, 2022, employing a special resolution. The merger, which was first announced in August 2021, is expected to be effective January 1, 2023, creating the temporarily-named New Self-Regulatory Organization of Canada (New SRO). The New SRO is anticipated to launch on January 1, 2023.
For Registrants, the New SRO will mean new regulations and rules to follow in order to stay compliant.
The New SRO will have two classes of members: Dealer Members, consisting of investment dealers and mutual fund dealers, and Marketplace Members, including recognized exchanges and systems facilitating securities or derivatives trading in Canada.
Takeaways:
The good news is that the New SRO will initially maintain the fee structures and access criteria of IIROC and the MFDA, along with their existing proficiency and continuing education requirements. However, efforts will be made to harmonize continuing education programs in the future.
In Quebec, mutual fund dealers will become members of the New SRO. However, they will not be subject to the New SRO rules and they will continue to be regulated under the CSA’s rules, apart from “provisions required to ensure the smooth operation of the new SRO, to their Quebec activities.”
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer.
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