CIRO to step up fund dealer oversight in Quebec

The Canadian Investment Regulatory Organization (CIRO) will step up its oversight of mutual fund dealers in Quebec, following a deal with the Autorité des marchés financiers (AMF) and the government of Quebec.

The three bodies have agreed that CIRO will take over responsibility for registration of fund dealer reps and carrying out dealer compliance exams in Quebec.

The date for the transition to CIRO oversight has not been set, and will be announced in the AMF Bulletin “when CIRO has the operational capability to perform or exercise the new functions and powers.”

“CIRO and the AMF will work together on a timeline for implementation of the delegation of powers,” the regulators said in a release, adding that there will also be a transition period to allow fund dealers to move to CIRO.

In the meantime, the AMF will continue its registration and compliance functions in the fund dealer industry.

Historically, fund dealers in Quebec have been overseen under an agreement between CIRO predecessor, the Mutual Fund Dealers Association of Canada, the AMF, and La Chambre de la sécurité financière.

The agencies described the planned new arrangement as a “milestone in the harmonization of the regulatory and operational framework across Canada.”

“This delegation will increase consistency and efficiency in the delivery of regulation in Québec, which is to the benefit of Quebecers and the Quebec financial services industry,” said Claudyne Bienvenu, vice-president for Quebec and Atlantic Canada with CIRO, in a release.

“We look forward to working with the AMF and the new member firms in smoothly transferring oversight to CIRO in Montreal,” she added.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.