Securities Law

BCN 2008/12 - Notice and Request for Comment Joint Application of Canadian Investor Protection Fund and the Investment Dealers Association of Canada [BCN - Lapsed]

Published Date: 2008-03-07
Rescinded Date: 2012-07-13
Related Document(s):

A.  Application
The Canadian Investor Protection Fund (CIPF) and the Investment Dealers Association of Canada (IDA) applied to each member of the Canadian Securities Administrators (CSA) to amend the Memorandum of Understanding (MOU) between CIPF and the CSA and applied to the British Columbia Securities Commission to amend its order approving CIPF as a compensation fund (Approval Order), to reflect the realignment of their regulatory roles and responsibilities.

The British Columbia Securities Commission is publishing the joint application of CIPF and the IDA (Joint Application) for comment together with the following related documents:

1. an amended By-law Number 1 of CIPF
2. an amended and restated MOU between CIPF and the CSA
3. an amended and restated Approval Order

The Joint Application seeks the CSA's approval of the realignment of the regulatory roles and responsibilities between CIPF and the IDA. The realignment results in CIPF focusing on its primary functions of risk management, administration of member insolvencies, and payment of customer losses. CIPF no longer has an oversight role over the IDA.

B. Proposed Approval Order and MOU
In response to the Joint Application, staff revised the current approach to regulatory oversight of CIPF in light of the approach to oversight of other regulated entities. Staff proposed changes to the Approval Order and MOU to make them more consistent with those of other regulated entities. The amended MOU focuses on matters of coordination of CSA oversight and CIPF's reporting obligations. Other provisions impose requirements on CIPF that are in the current MOU are moved to the Approval Order.

The amended and restated Approval Order will establish terms and conditions for CIPF in the following areas:

1. Corporate governance
2. Funding and maintenance of CIPF
3. Customer protection
4. Financial and operational viability
5. Risk management
6. The Industry Agreement between CIPF and the IDA
7. Assistance to a Participating SRO
8. Collection of information
9. The MOU between CIPF and the CSA

C. Comment Process
We are seeking comments on the Joint Application and related documents. You should send your comments in writing by April 7, 2008 to:

British Columbia Securities Commission
P.O. Box 10142 Pacific Centre
701 West Georgia Street
Vancouver, BC V7Y 1L2
Attention:   Jacob Kojfman, Senior Legal Counsel, Capital Markets Regulation
jkojfman@bcsc.bc.ca

Submissions cannot be kept confidential because securities legislation in certain provinces requires that a summary of written comments received during the comment period be published.

If you have questions, you may contact:

Jacob Kojfman
British Columbia Securities Commission
(604) 899-6678
(800) 373-6393 (in BC and Alberta)


March 7, 2008

 


Douglas M. Hyndman
Chair

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website atwww.bcsc.bc.cain the section Securities Law & Policy: Policies & Instruments.