What Canadian investors want in a modern SRO

SRO Report
What Canadian investors want in a modern SRO

The financial services sector in Canada is operating in a rapidly changing and dynamic environment. These changes have been brought about through significant world events, new technologies and innovative business models. In addition, the need to maintain and enhance investor confidence in Canada’s capital markets and the regulatory system that protects them has never been greater.

There are currently two significant assessments of Canada’s securities regulatory system underway: (1) the Canadian Securities Administrators’ (CSA) review of the framework for self-regulatory organizations (SROs); and (2) the review by the Ontario Capital Markets Modernization Taskforce (the Taskforce) of Ontario’s capital markets, which includes a review of the SRO framework.

In order to assist both the CSA and the Taskforce in their respective reviews, the MFDA undertook a comprehensive independent research survey to examine Canadian investors’ expectations, priorities and hopes for the future of the SRO framework in Canada.

The resulting insights highlight what Canadians think about the current regulatory environment and how their views support meaningful change that is both transformative and forward looking. This research revealed that investors prefer a comprehensive SRO review to a simple merger, and a model that emphasizes accountability, government oversight and investor protection. Ultimately, Canadians believe that such a comprehensive approach would increase public confidence.

To read the full report, follow this link.