knowledge topics
Securities and Mutual Fund Regulation
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM 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)
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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
Read more about the Taxonomy used in the FP-BoK
REFERENCES
- http://www.securities-administrators.ca/aboutcsa.aspx?id=80
- http://www.iiroc.ca/about/Pages/default.aspx
- http://www.iiroc.ca/about/Media/WhatWeDoTranscript_en.pdf
- http://www.mfda.ca/about/vision.html
- http://www.mfda.ca/regulation/rules.html
- http://www.securities-administrators.ca/aboutcsa.aspx?id=77