The Canadian Securities Administrators (CSA) is aiming for the new industry self-regulatory organization to be running by the end of next year.

The CSA said efforts are moving ahead to consolidate the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA), and their respective contingency funds, into a single industry SRO and investor protection fund.

The regulators indicated they are expecting the mergers to be complete by the end of 2022, including the required government approvals.

They also expect to name the CEO and the board of the new SRO in the second quarter of next year.

A search committee has been formed to recommend and recruit both the CEO and directors. The committee, which includes representatives from IIROC, the MFDA and the CSA, is chaired by AnneMarie Ryan, a former industry executive and commissioner with the Ontario Securities Commission (OSC).

At the same time, the CSA has created several working groups to manage different parts of the project, including one to address the new SRO’s launch in Quebec. That group has representatives from the Chambre de la sécurité financière, IIROC, and the fund industry trade group, Conseil des fonds d’investissement du Québec.

“As stated in our position paper, our main objective is to support the development of a regulatory framework that has a clear public interest mandate and fosters fair and efficient capital markets,” said Louis Morisset, chair of the CSA and president and CEO of the Autorité des marchés financiers, in a release.

Last month, the CSA completed a consultation on its proposed approach to establishing a new SRO. While the overall response to the project was positive, industry and investor advocates alike raised a number of concerns about the planned new regulator’s governance structure, among other issues.

The CSA said that it has reviewed the feedback, which “will be considered as the process moves forward.”

Mark Gordon, president and CEO of the MFDA, said “the establishment of a new SRO represents a historic opportunity for Canada to modernize its self-regulatory framework, and the MFDA is 100% committed to ensuring its successful creation.”