knowledge topics

Securities and Mutual Fund Regulation

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals

Identify that the provincial/territorial governments create securities legislation through Securities Acts.
Identify that the provincial/territorial governments delegate securities regulation to their respective Securities Regulatory Authorities (SRAs).
Identify the applicable Securities Regulatory Authorities (SRAs) in Canada.¹
Explain the purpose of the applicable provincial/territorial Securities Regulatory Authorities (SRAs), such as:
- Investor protection
- Fair access to markets
- Reduction of systematic risk
- Regulate the marketplaces within their jurisdictions
Explain the role of the provincial/territorial Securities Regulatory Authorities (SRAs), such as:
- Administer provincial/territorial securities laws
- Ensure that those who sell securities within the province/territory are registered to do so and conduct themselves according to applicable laws and professional standards
- Regulate public companies and investment funds which are available for purchase by investors in their jurisdiction
Explain the provincial/territorial Securities Acts’ broad principles of regulation, such as:
- Regulation of product distribution
- Disclosure
- Registration
- Enforcement
- Consumer protection
Identify the Self-Regulated Organizations in Canada.
Identify that Investment Industry Regulatory Organization of Canada’s (IIROC) and the Mutual Fund Dealers Association’s (MFDA) regulatory functions are established under Recognition Orders from provincial/territorial Securities Regulatory Authorities (SRAs).
Identify that Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization (SRO) that oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
Identify the mandate of the Investment Industry Regulatory Organization of Canada (IIROC).²
Explain how the Investment Industry Regulatory Organization of Canada (IIROC) supports the provincial/territorial Securities Regulatory Authorities (SRAs).³
Identify that the Mutual Fund Dealers Association of Canada (MFDA) is the national self-regulatory organization (SRO) that oversees the distribution of mutual funds in Canada.
Identify the mandate of the Mutual Fund Dealers Association of Canada (MFDA).⁴
Explain how the Mutual Fund Dealers Association of Canada (MFDA) supports the provincial/territorial Securities Regulatory Authorities (SRAs).⁵
Identify the mandate of the Canadian Securities Administrators (CSA).⁶
Identify that only approved registrants may provide advice on and transact in securities-related business in the provinces in which:
- The registrants are registered
- The securities are registered and qualified to be distributed
- The client resides
Identify the types of penalties that may be imposed for violating securities legislation, such as:
- Suspension of a licensed representative
- Deregistration as a licensed representative
- Monetary penalties
- Market access restrictions
- Re-training or re-certification
- Criminal prosecution or imprisonment
Identify the options available to securities industry consumers for dispute resolution, such as:
- File a complaint with the advisor / firm / dealer involved
- File a complaint with the Ombudsman for Banking Services and Investments (OBSI)
- File a complaint with a Self-Regulatory Organization (SRO)
- File a complaint with a Securities Regulatory Administrator (SRA)
- Take legal action

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of
Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Compare

To note the similarities and differences between two or more things
Estimate

To determine an approximate value for
Calculate

To find the value using mathematics
Convert

To change from one form or purpose to another
Evaluate

To reach a conclusion or make a judgement through careful study
Interpret

To give the meaning of / to construe or understand / to translate orally

Financial Planning Body of Knowledge

knowledge topics

Securities and Mutual Fund Regulation

KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals

Glossary of Verbs (mouse over to see definition)

RELEVANT CASE STUDIES

REFERENCES

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals