Our latest regulatory review of 2023 looks at all releases and notices issued by the Nova Scotia Securities Commission and the Canadian Securities Administrators (CSA) since May. It’s been a surprisingly busy spring and summer for securities regulators in 2023. In case you missed any of these releases or notices here’s a quick rundown on what they meant for issuers and investors and links to the documents, where you can find the full details.
Members of the CSA announced exemptions from certain filing requirements to address the brief period when the System of Electronic Document Analysis and Retrieval (SEDAR) will be switched to a new centralized system, SEDAR+.
May 24, 2023 – Investor Alert: Advisor Impersonation Schemes
The New SRO and CSA warned Canadian investors not to be fooled by fraudsters impersonating real investment advisors.
The CSA issued an update about SEDAR+, the new system that will be used by all market participants to file, disclose and search for issuer information in Canada’s capital markets, which had a planned launch date of June 13, 2023. The CSA now intends to launch SEDAR+ on July 25, 2023, with a contingency date in September.
The CSA launched a review of the use of chargebacks in the mutual fund industry. The CSA is undertaking this review due to concerns about potential conflicts of interest associated with this practice.
June 6, 2023 - Settlement approved for Fractional Finance, Inc.
The Nova Scotia Securities Commission approved a settlement agreement with Fractional Finance, Inc. (FFI). FFI is in the business of open source software development. It is not a reporting issuer in any Canadian jurisdiction.
Members of the CSA issued exemptions from certain filing requirements in connection with the deferred launch of SEDAR+, the new platform to be used for filing, disclosing and searching for information on Canada’s capital markets.
The CSA and the Canadian Council of Insurance Regulators announced the launch of a total cost reporting implementation committee with the participation of the Canadian Investment Regulatory Organization.
The CSA published a Notice announcing a temporary exemption on the applicability of section 4.1 of National Instrument 24-101 Institutional Trade Matching and Settlement (NI 24-101) for registered dealers and advisers with respect to the exception reporting requirement of NI 24-101.
On World Elder Abuse Awareness Day on June 15, the CSA highlighted the prevalence of financial abuse that many older Canadians experience, and the steps that Canadians can take to recognize, prevent and report it.
The CSA warned Canadians to be vigilant about purported crypto trading service providers that are claiming to be authorized or affiliated with fictitious regulatory or dispute resolution organizations.
The CSA extended the comment period for its consultation on proposed amendments to the corporate governance disclosure requirements and policy relating to the director nomination process, board renewal and diversity to September 29, 2023
June 29, 2023 - SEDAR+ filing system to launch July 25
The CSA confirmed previously announced plans to launch SEDAR+ on July 25, 2023. SEDAR+ is the new system that will be used by all market participants to file, disclose and search for issuer information in Canada’s capital markets.
The securities regulatory authorities of British Columbia, Alberta, Saskatchewan, Ontario, Québec, New Brunswick, Nova Scotia, Yukon and Northwest Territories published advanced notice of implementation of final amendments to Multilateral Instrument 25- 102 Designated Benchmarks and Benchmark Administrators (MI 25-102) that establish the framework for the designation and regulation of commodity benchmarks and the persons or companies that administer them.
The CSA welcomed the publication on June 26, 2023 of the International Sustainability Standards Board’s first two sustainability disclosure standards: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures (together, the ISSB Standards).
The CSA published guidance to help fund managers understand and comply with securities law requirements for public investment funds holding crypto assets (public crypto asset funds).
Members of the CSA announced exemptions from certain filing requirements to address the brief period when the System for Electronic Document Analysis and Retrieval (SEDAR) will be switched to a new centralized system, SEDAR+.
The CSA and the Canadian Investment Regulatory Organization published joint Staff Notice 31-363 Client Focused Reforms: Review of Registrants’ Conflicts of Interest Practices and Additional Guidance.
August 10, 2023 - CSA updates industry on institutional trade matching deadline
The CSA published Staff Notice 24-319 to update industry on its recommendations regarding the T+1 trade matching deadline.
August 10, 2023 - Canadian securities regulators initiate review of exchange-traded funds
The CSA launched a review of exchange-traded funds (ETFs). ETFs are an increasingly popular investment vehicle, offering exposure to a variety of underlying assets and investment strategies, with intraday liquidity on the secondary market. ETFs comprise approximately 15% of total publicly offered investment fund assets in Canada and are expected to continue to grow.
The Manitoba Securities Commission, Ontario Securities Commission, and Autorité des marchés financiers announced the extension of local blanket orders that provide temporary exemptions from the order-execution-only (OEO) trailer ban.
September 7, 2023 - Canadian Securities Administrators release Year in Review
The CSA published its consolidated Year in Review. This report highlights the progress the CSA has made between July 1, 2022, and June 30, 2023, towards fulfilling its mandate to improve, coordinate and harmonize regulation of the Canadian capital markets and achieving the strategic goals outlined in its 2022-2025 Business Plan.