Investor Presentaiton
and practical experience while freeing the government from assuming the bulk of the costs
for these activities4.
Two principal SRBS operate in the mutual fund industry. The Investment Dealers Association
of Canada (IDA) regulates the activities of its 190 members employing some 39,000 people.
Its purpose is to protect investors while ensuring the market's integrity. In addition, it aims
to foster fairness, competitiveness, and efficiency in the capital markets. Chambre de la
sécurité financière (CSF) is responsible for the discipline, training, and ethics for its 28,000
members from the personal insurance and brokerage fields. A syndic with investigative and
administrative powers is appointed to supervise these practices.
The chart at the end of this chapter offers a simplified depiction of the mutual fund sector's
legal and regulatory framework.
2.3.2 Projects underway
There are a few noteworthy regulatory projects now being developed. IDA launched a task
force in June 2005 charged with modernizing securities legislation in Canada 5. This task
force intends to review five major issues: individual investor protection, obligations with
respect to governance, access to capital and the prospectus requirement, the regulatory
burden, and regulatory implementation.
4
5
Ultimately, whether oversight is exercised by the public or private sector, the cost is passed on
to the consumer through higher fees. The model also poses the problem of potential conflicts of
interest. The SRBs' mechanisms of checks and balances can minimize this problem.
THE INVESTMENT DEALERS ASSOCIATION OF CANADA, IDA launches the Task Force to Modernize
Securities Legislation in Canada, [Online]
[http://www.ida.ca/Files/Media/Media Release/General/MRG200506270_en.pdf] (Consulted in
February 2006)
Consultation paper
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