The member firms of the Investment Dealers Association of Canada have approved a proposal to spin off the IDA’s trade association role.

In a special members meeting today, IDA member firms voted in favour of changing the association’s historic dual mandate as a self-regulatory organization and industry representative.

Members overwhelmingly supported resolutions to continue the IDA as an SRO, and create a separate and independent trade association to represent the securities industry, the IDA reported.

“We are very pleased that the members have endorsed change that preserves the advantages of self-regulation, creates an effective industry advocate and responds to the requirements of today’s demanding environment,” said current IDA chair Ross Sherwood.

A special meeting of the IDA board of directors will be held to set an implementation date, approve funding of the trade association and select names for both organizations. Joe Oliver will continue as president and CEO of the self-regulatory organization and Ian Russell, currently IDA senior vice-president, Industry Relations and Representation, will head up the new trade association.

Oliver said that, “The SRO will continue to pursue the mandate it shares with the securities commissions — investor protection and the efficiency and competitiveness of the Canadian capital markets. We will continue to draw on a key advantage of self-regulation – the expertise of the many industry volunteers who serve on our regional district councils and numerous industry committees. Furthermore, today’s decision removes an impediment to consolidation with Canada’s other SROs, a highly desirable initiative in the public interest.”

The new trade association will be national in scope with regional offices across the country. Membership will be voluntary. “The new trade association will advance the industry’s commercial and business interests, as well as its independent positions on regulatory matters, with governments, regulators and the public,” said Tim Price, chair of the IDA Regional Dealers Committee and member of the Trade Association Steering Group.

“Today’s decision will result in vigorous and independent industry advocacy unfettered by the public interest mandate of the SRO,” Price added.