Opinion: Canada’s investment sector needs a new regulator, not just a merger of existing bodies

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Canada’s investment sector needs a new regulator, not just a merger of existing bodies GlobeBusiness

I would suggest one important area where the CSA can focus their newly found regulatory agility and determination is on their coming review of Canada’s self-regulatory organizations . This review is highly relevant for the future of investor protection and should be keenly watched by Canadians from Bay Street to Main Street.

After years of putting up with the fox guarding the hen house, the level of public trust and confidence in the SROs has been severely eroded. If the CSA wants to continue to rely on SROs to help them fulfill their public interest mandate to protect Canadian investors and promote confidence in Canada’s capital markets, they need to recognize that their review of the SRO framework is of enormous consequence to both of these objectives – and they need to get it right.

Trying to merge existing entities with existing cultures and processes is not the way forward. For meaningful change, change that is innovative and bold, a clean slate is needed to develop global best practices and world-class investor protection. The CSA must fully embrace this unique opportunity with a view toward real and enduring reform through a strategic analysis of the future SRO structure in Canada.

 

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