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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 FCNB with the power to recognize SROs. Following are the two SROs currently recognized by FCNB.

Mutual Fund Dealers Association (MFDA)

Governance

Oversight Review Report 

Oversight Review Report of the Mutual Fund Dealers Association of Canada 4 July 2018

Oversight Review Report 

Oversight Review Report of the Mutual Fund Dealers Association of Canada 15 September 2017.

Oversight Review Report 

Oversight Review Report of the Mutual Fund Dealers Association of Canada 18 November 2016

Oversight Review Report 

Oversight Review Report of the Mutual Fund Dealers Association of Canada 15 April 2013

Instruments in Force

Recognition Order 

Variation and Restatement of Recognition Order of MFDA on 12 April 2018

Recognition Order 

Variation and Restatement of Recognition Order of MFDA on 17 November 2014

Memorandum of Understanding

Memorandum of Understanding Regarding the Oversight of the MFDA among the Recognizing Regulators 2 October 2013

Terms of Recognition

Recognition to the Mutual Fund Dealers’ Association of Canada (MFDA) as a Self-Regulatory Organization (SRO) in New Brunswick (28 November 2008)

Recognition Order 

Recognition to the Mutual Fund Dealers’ Association of Canada (MFDA) as a Self-Regulatory Organization (SRO) in New Brunswick (28 November 2008)

Investment Industry Regulatory Organization of Canada (IIROC)

Governance

Oversight Review Report Oversight Review Report of the Investment Industry Regulatory Organization of Canada 5 August 2020
Oversight Review Report Oversight Review Report of the Investment Industry Regulatory Organization of Canada 18 April 2019
Oversight Review Report  Oversight Review Report of the Investment Industry Regulatory Organization of Canada 26 April 2018
Oversight Review Report  Oversight Review Report of the Investment Industry Regulatory Organization of Canada
4 July 2017
Oversight Review Report Oversight Review Report of the Investment Industry Regulatory Organization of Canada
3 March 2016
Oversight Review Report  Oversight Review Report of the Investment Industry Regulatory Organization of Canada
4 December 2014

Orders and Decisions

Order Order In the Matter of the Securities Act, S.N.B. 2004, c. 5-5.5 [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

Instruments in Force

Recognition Order  Variation and Restatement of Recognition Order of IIROC
12 April 2018
Order  Variation and Restatement of Recognition Order of IIROC
7 June 2010
Memorandum of Understanding Memorandum of Understanding Regarding the Oversight of IIROC among the Recognizing Regulators
1 June 2008
Recognition Order  Recognition of IIROC as a Self-Regulatory Organization in New Brunswick
1 June 2008

Compensation and contingency funds of a self-regulatory organization

The Securities Act provides FCNB 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 are the two investor protection funds currently recognized by FCNB.

Canadian Investor Protection Fund

The Canadian Investor Protection Fund (CIPF) is the only compensation fund approved by the Canadian Securities Administrators (CSA) for investment dealers regulated by the Investment Industry Regulatory Organization of Canada (IIROC). CIPF is funded by IIROC-regulated Dealer Members and all IIROC Dealer Members.                                                                                                          

CIPF’s role in the Canadian regulatory system is governed by the following agreements:

  • 30 September 2008: A 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 FCNB, have also issued Approval Orders regarding CIPF.

A Memorandum of Understanding (MOU) with the CSA    

Approval Orders regarding CIPF    

  • 28 November 2014: An Industry Agreement with IIROC that establishes the working relationship and respective responsibilities of CIPF and IIROC. Under this agreement, IIROC must provide prompt notice to CIPF of any situation that is likely to require a payment from the Fund.

MFDA Investor Protection Corporation

The MFDA Investor Protection Corporation (MFDA IPC) was established on 14 November 2002. Its primary purpose is to provide protection to eligible clients of MFDA dealers if the client’s property held by their dealer is unavailable as a result of the insolvency of the dealer. The MFDA IPC provides coverage to customers of members of the MFDA for losses of property in customer accounts caused by the insolvency of a member. The MFDA IPC’s objective is to return assets to customers or provide compensation for their value as at the date of the insolvency when the assets are not available from the insolvent member. Coverage of customer accounts commenced on 1 July 2005.

IPC’s role in the Canadian regulatory system is governed by individual approval orders at the jurisdictional level such as the following agreement:

  • 14 May 2015, Approval Order In the Matter of the MFDA Investor Protection Corporation and In the Matter of the Mutual Fund Dealers Association of Canada

Approval Order