5 regulatory changes you need to know

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

In fact, Toronto-based Fraser Mackenzie Holdings left IIROC earlier this year, partly because rising regulatory fees and changes are continuing to pressure advisors while they’re fighting to deliver returns.

Read: Small firms fight for survival: IIAC

And the burden won’t let up soon. So, IIAC recently compiled a list of more than 100 current regulatory proposals and papers that are being implemented or commented on. It includes changes introduced since 2008 by both CSA and IIROC, given firms may still be integrating them into advisors’ workflows.

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

1. CSA Consultation Paper 33-403 The Standard of Conduct for Advisers and Dealers

Released: October 25, 2012

Comment period ended: February 22, 2013

Focuses on: The paper explores the potential benefits and competing considerations of introducing a statutory fiduciary or best interest standard for advisors and dealers when they provide advice to retail clients. Since the comment period, there have been two roundtables, as well as a panel scheduled for July 23, 2013 to consolidate all comments made.

For more on the CSA paper, read:

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2. NI 23-103 Electronic Trading

Released: October 25, 2012

Comment period ended: January 23, 2013

Focuses on: This proposal outlined the risk and supervisory policies, procedures and controls that must be put in place for dealers to manage the risks associated with electronic trading, including the use of algorithms and high frequency trading, said the CSA in its release. NI 23-103 was implemented on March 1, 2013. Read the OSC’s answers to FAQ about NI 23-103.

For more on electronic trading, read:

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3. CSA Consultation Paper 21-401 Real-Time Market Data Fees

Released: November 8, 2012

Comment period ended: February 8, 2013

Focuses on: Real-time market data plays a key role in Canada’s equity markets, as it provides insight into current prices, liquidity and trading activity, said the CSA in its release. So it’s considering whether it should address the fees charged for market data by individual marketplaces, as well as collectively by all Canadian marketplaces.

For more, read: CSA seeks comment on real-time market data fees

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4. Amendments to NI 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations

Released: November 15, 2012

Comment period ended: February 15, 2013

Focuses on: The CSA says a common dispute resolution service is essential for the securities industry. It adds OBSI is an appropriate choice, with CSA Chair Bill Rice saying in a release, “Mandating all registered dealers and advisers to offer dispute resolution services through OBSI will establish a level playing field in terms of expectations and costs.”

For more, read:

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5. OSC Consultation Paper 45-710 Considerations for new capital raising prospectus exemptions

Released: December 14, 2012

Comment period ended: March 8, 2013 (Read comment letters)

Focuses on: The paper discussed the implementation of new prospectus exemptions in Ontario. The OSC aims to facilitate capital raising in the exempt market, while continuing to deliver strong investor protection. The regulator proposes:

an exemption to allow crowd funding, subject to limits for issuers and retail investors;
an offering memorandum exemption;
an exemption based on an investor’s investment knowledge; and
an exemption based on an investor receiving advice from a registrant.

For more, read: OSC seeks comment review of capital-raising prospectus exemptions

Next week, we’ll provide a list of 5 more current proposals and papers. Following that, we’ll also give you a peek at some of the newest slated for release.

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

FAIR Canada applauds Saskatchewan’s OBSI bill

Private equity firm buys maker of hockey rink boards

Scotiabank profits slip amid rising strain in auto loans, mortgages