Canadian Securities Administrators propose delegating key registration functions

The delegations aim to harmonize the registration process for investment and mutual fund dealers
Canadian Securities Administrators propose delegating key registration functions

The Canadian Securities Administrators (CSA) announced plans to expand the delegation of certain registration functions to the Canadian Investment Regulatory Organization (CIRO), aiming to streamline and harmonize the registration process for investment dealers and mutual fund dealers across Canada.

Currently, CIRO handles some registration functions under delegated authority from certain CSA members. The proposed changes would allow for a consistent national approach to routine registration applications for CIRO members while enabling CSA members to focus on broader regulatory priorities. Portfolio managers, investment fund managers, exempt market dealers, and other registrants would continue to register directly with their local securities regulators.

The CSA highlighted that this initiative aligns with its 2022-2025 business plan to reduce regulatory burden and improve efficiency by centralizing registration processes for select market participants. "This marks a natural progression of our efforts to modernize Canada's self-regulatory framework and adapt to evolving capital markets," said Stan Magidson, CSA chair and chair of the Alberta Securities Commission. Magidson emphasized that a streamlined process would benefit market participants while enabling regulators to concentrate on developing policies that foster fair and efficient markets.

"CIRO, like all regulators, has a responsibility to deliver regulation efficiently, effectively and remove duplication. The CSA's consideration of streamlining registration delegation supports our strategic objective to deliver a more effective registration framework," said Andrew J. Kriegler, president and CEO of CIRO.

If approved, the delegation model would initially apply to routine registration applications for investment dealers and mutual fund dealers, with local securities regulators maintaining oversight and continuing to address novel issues, exemptive relief applications, and regulatory policy.

The CSA confirmed that any delegation orders or rule amendments would be issued locally by CSA members in due course, subject to necessary approvals.

"As CIRO continues to deliver on its strategic plan, I look forward to further collaborating with the CSA to improve registration standards across Canada. We will work with CSA members that decide to delegate, under their respective timelines, to support a smooth delegation process,” Kriegler said.