Returning money to harmed investors and advisor incorporation are among the top considerations for the Canadian Investment Regulatory Organization (CIRO) in the coming months.
On Wednesday, the self-regulatory organization (SRO) set out its priorities for the fiscal year ended March 30, 2025, headlined by its ongoing work to integrate its predecessor SROs. This work includes developing a harmonized rulebook, a new fee model, and a common approach to compliance, proficiency and continuing education.
CIRO is also working to “develop proposed rule amendments to expand the group of approved persons that are able to conduct activities for their sponsoring [dealer] through a corporation,” it said. Currently, mutual fund reps can flow some of their revenues through corporations to benefit from preferential tax rates, but investment fund reps cannot.
On the oversight front, the SRO said it will complete testing for compliance with the client-focused reforms and finalize a report on its findings with the Canadian Securities Administrators (CSA). It will also begin compliance reviews of fund dealer firms in Quebec.
For investors, CIRO said it’s continuing to work on a framework to return funds disgorged in enforcement actions to investors who have been harmed by industry misconduct.
In the emerging crypto space, the SRO is working with the CSA to develop an oversight framework for crypto platforms, including specific requirements for asset custody and segregation. CIRO is also building surveillance tools to review over-the-counter trading in cryptoassets.
Other policy priorities include customizing rules for ETFs, tracking interest rate derivatives trading, and introducing monitoring for potential manipulation of the new interest rate benchmark, CORRA.