Paul Allison, Chair of IIROC Board of Directors, said: “The vote to create a new single enhanced SRO is a ringing endorsement of the work done by the CSA and is the right decision for investors and the investment industry.”
Read more: New SRO must ‘provide a better investor experience’
Andrew J. Kriegler (pictured above), President and CEO of IIROC, who will be the new SRO’s CEO as of January 1, added: “The successful vote demonstrates the industry’s trust in the self-regulatory framework and in the ability of the new SRO to address existing regulatory fragmentation and provide more opportunities to firms to evolve their business model.”
Regulatory approval is still required, but is expected since the CSA developed the proposal. The new entity will temporarily be known as the New Self-Regulatory Organization of Canada (New SRO). The two regulators said in a joint statement: “The amalgamation represents significant and positive change which will benefit both investors and the investment industry”.
Investors are expected to have easier access to different products, so they won’t have to change advisors and firms as their investing needs evolved. The New SRO will aim to create a level regulatory playing field for investment firms across Canada. It will also create a separate investor office dedicated to investor education and support for rule development, which is expected to enhance investor protection. There will also be a dedicated investor advisory panel to advise the New SRO on investors’ issues.
