5 more regulatory proposals to follow

Small and medium firms are struggling to keep up with regulatory changes.

And the burden won’t let up soon. Last week, Advisor.ca told you IIAC compiled a list of the current regulatory proposals and papers weighing on firms and advisors. This list includes changes introduced since 2008 by both CSA and IIROC, given firms’ compliance departments may still be integrating them into staff workflows.

Read: Compliance costs cut into client services

Here’s a look at 5 more items on that list:

6. Proposed Rule 2800C – Transaction Reporting for Debt Securities

Released: January 8, 2013

Comment period ended: March 9, 2013

Focuses on: In its release, IIROC said this proposed rule will require each IIROC dealer member to report all debt market transactions it executes on a post-trade basis, including those executed on alternative trading systems or through an inter-dealer bond broker. It added trading in debt securities has increased significantly, with the value of secondary domestic bond market trading hitting approximately $10 trillion in 2012.

For more, read: IIROC to expand oversight of debt-securities trading

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7. Use of business titles and financial designations

Released: February 20, 2013

Comment period ended: March 9, 2013

Focuses on: IIROC wants to identify supervisory best practices that will improve transparency regarding the use of business titles and financial designations by registrants of its firms. It will issue guidance and a glossary of common certificates and designations. Watch the webcast that discusses the feedback received on the topic, as well as on the proper use of titles.

For more, read:

• IIROC issues guidance on designations
• Raise advisor standards
• Advisors should earn their titles, says Advocis

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8. NI 62-105 Security Holder Rights Plans

Released: March 14, 2013

Comment period ended: June 12, 2013

Focuses on: Establishing a comprehensive regulatory framework for the treatment of rights plans in Canada, which would provide a target company’s board and shareholders with greater discretion in the use of these plans. CSA chair Bill Rice said in a release, “Barring exceptional circumstances, the decision to adopt and maintain a rights plan would be a matter for company boards and shareholders, not securities regulators.”

For more, read:

• CSA proposes framework for shareholder rights plans
• What’s new in compliance? (refer to section 3)

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9. Amendments to NI 81-102 Mutual Funds, along with proposed changes to the CSA’s companion policy, 81-102 Mutual Funds, which came into force in April 2012.

Released: March 27, 2013

Comment period ended: June 25, 2013

Focuses on: This proposal aims to enhance investor protection and market efficiency by providing a consistent regulatory framework when it comes to both mutual funds and non-redeemable investment funds. Key investor protections include: introducing rules for non-redeemable investment funds relating to conflicts of interest; and security holder and regulatory approval of fundamental changes to the fund or its management.

For more, read: CSA proposes investment fund rule changes

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10. CSA Consultation Paper 91-407 Derivatives: Registration

Released: April 18, 2013

Comment period ended: June 17, 2013

Focuses on: “Improvements to the [OTC] derivatives markets that improve transparency, mitigate systemic risk, and protect against market abuse,” said CSA chair Bill Rice in a release. The paper is one component of an eight-part series that looks at: activities that trigger derivatives registration; categories of registrants; and the obligations of these derivatives registrants.

For more, read: CSA proposes derivatives market registration and regulation

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Next week, we’ll offer a list of proposals being slated for release and comment.