Self-Regulatory Organizations (SROs)
A Self-Regulatory Organization (SRO) is a non-government entity that represents registrants who are members of the organization and is responsible for regulating the operations, standards of practice, and business conduct of its members and their representatives in order to protect investors and public interest.
The Securities Act provides the Commission with the power to recognize SROs.
On October 20, 2022, the Commission approved the amalgamation of the two existing SROs – the Investment Industry Regulatory Organization of Canada (“IIROC”) and the Mutual Fund Dealers Association of Canada (“MFDA”) into a single enhanced new SRO. The new SRO came into operation on January 1, 2023, and was provisionally named New Self-Regulatory Organization of Canada (“New SRO”). On June 1, 2023, New SRO changed its name to the Canadian Investment Regulatory Organization (“CIRO”), which was approved by provincial and territorial regulators.
CIRO member firms have until December 31, 2024 to adopt the new name and logo on all required disclosure documents.
Under the October 20, 2022 Recognition Order of the New SRO, the Commission also accepted the voluntary surrender of the recognition of IIROC and the MFDA, effective January 1, 2023.
Following are the instruments in force for CIRO recognized by the Commission.
Instruments in Force
Recognition Order of CIRO on 1 June 2023
Memorandum of Understanding Regarding the Oversight of the New SRO among the Recognizing Regulators on 20 October 2022
Information with respect to the MFDA and IIROC, prior to their amalgamation into CIRO, is available below under “Historical Documents”.
Compensation and contingency funds of a self-regulatory organization
The Securities Act provides the Commission with the power to enter into an agreement, memorandum of understanding, or arrangement that relates to the compensation and contingency fund of a self-regulatory organization.
Following is the investor protection fund currently recognized by the Commission.
Canadian Investor Protection Fund
The Canadian Investor Protection Fund ("CIPF") is the compensation fund approved by the Canadian Securities Administrators ("CSA") for investment dealers and mutual fund dealers regulated by the Canadian Investment Regulatory Organization (“CIRO”). CIPF is funded by CIRO-regulated member firms.
CIPF was formed concurrently with the amalgamation of IIROC and the MFDA into CIRO. At the same time, the investor protection funds funded by IIROC members (also named CIPF - “Former CIPF”) and MFDA members (the MFDA Investor Protection Fund - “MFDA IPC”), amalgamated into a new investor protection fund named CIPF, and became operational on 1 January 2023.
CIPF’s role in the Canadian regulatory system is governed by the Memorandum of Understanding ("MOU") with the CSA that addresses the governance, funding and maintenance of CIPF as well as CIPF’s responsibilities for investor protection and reporting to the CSA. As provided for by securities laws and regulations in many Canadian provinces and territories, certain regulators, such as the Commission, have also issued Approval Orders regarding CIPF.
The Commission is publishing an MOU among the CSA regarding the oversight of the CIPF. The Commission is also publishing an Approval Order of CIPF.
Under the Approval Order of CIPF, the Commission revoked the approval of Former CIPF and MFDA IPC as compensation funds, effective 1 January 2023.
Memorandum of Understanding
1 January 2023: MOU regarding the Oversight of the CIPF among the CSA
Approval Order
1 January 2023: CIPF Approval Order
Information with respect to the former investor protection funds, MFDA IPC and the Former CIPF, prior to their amalgamation into CIPF, is available below under “Historical Documents”.
Historical Documents
Canadian Investment Regulatory Organization (CIRO)
| Recognition Order | Recognition Order of the New SRO on 20 October 2022 |
Mutual Fund Dealers Association (MFDA)
Instruments
| Recognition Order |
Variation and Restatement of Recognition Order of the MFDA on 1 April 2021 |
| Recognition Order |
Variation and Restatement of Recognition Order of the MFDA on 12 April 2018 |
| Recognition Order |
Variation and Restatement of Recognition Order of the MFDA on 7 November 2014 |
| Recognition Order |
Recognition Order of the MFDA as a SRO in New Brunswick on 17 November 2008 |
| Terms of Recognition |
Terms and Conditions of Recognition of the MFDA as a SRO for Mutual Fun Dealers on 28 November 2008 |
| Memorandum of Understanding |
Memorandum of Understanding Regarding the Oversight of the MFDA among the Recognizing Regulators on 1 April 2021 |
| Memorandum of Understanding |
Memorandum of Understanding Regarding the Oversight of the MFDA among the Recognizing Regulators on 2 October 2013 |
Orders and Decisions
| Order | Order in the Matter of the Securities Act, S.N.B. 2004, c. S-5.5 [as amended] and in the matter of the Mutual Fund Dealers Association of Canada – Access of Discretionary Fund for SRO Integration Costs. 28 July 2022 |
Investment Industry Regulatory Organization of Canada (IIROC)
Instruments
| Recognition Order | Variation and Restatement of Recognition Order of IIROC on 1 April 2021 |
| Recognition Order | Variation and Restatement of Recognition Order of IIROC on 12 April 2018 |
| Recognition Order | Variation and Restatement of Recognition Order of IIROC on 7 June 2010 |
| Recognition Order | Recognition of IIROC as a SRO in New Brunswick on 1 June 2008 |
| Memorandum of Understanding | Memorandum of Understanding Regarding the Oversight of IIROC among the Recognizing Regulators on 1 April 2021 |
| Memorandum of Understanding | Memorandum of Understanding Regarding the Oversight of IIROC among the Recognizing Regulators on 1 June 2008 |
Orders and Decisions
| Order | Order In the Matter of the Securities Act, SNB 2004, chapter S-5.5, as amended (The "Act") and in the matter of the Investment Industry Regulatory Organization of Canada. 27 October 2022 |
| Order | Order In the Matter of the Securities Act, S.N.B. 2004, c. S-5.5 [as amended] (act) and in the matter of the Investment Industry Regulatory Organization of Canada. 1 May 2015 |
| Order | Order In the Matter of Investment Industry Regulatory Organization of Canada – ss. 208(1) of the Securities Act – Proposed Distribution by IIROC of Funds Paid to It by Deutsche Bank Securities Ltd. 8 April 2013 |
| Order | Order In the Matter of Investment Industry Regulatory Organization of Canada – ss. 208(1) of the Securities Act – Proposed Distribution by IIROC of Funds Paid to It by Three Member Firms 8 March 2013 |
| Order (Repealed) | Order In the Matter of Investment Industry Regulatory Organization of Canada – ss. 208(1) of the Securities Act – Proposed Distribution by IIROC of Funds Paid to It by Three Member Firms 30 March 2012 |
(Former) Canadian Investor Protection Fund
Memoranda of Understanding:
30 September 2008: MOU regarding the Oversight of the CIPF among the CSA
Approval Orders:
1 January 2021: Variation and Restatement of CIPF Approval Order
28 November 2014: CIPF Approval Order
MFDA Investor Protection Corporation
Memorandum of Understanding:
1 January 2021: MOU among the CSA regarding the Oversight of the MFDA IPC (effective January 1, 2021)
Approval Orders:
1 January 2021: Variation and Restatement of the MFDA IPC Approval Order
14 May 2015: MFDA IPC Approval Order