Now, in a proxy circular distributed to its investment dealers on Friday, the New SRO board members are requesting members vote for the name change on April 24. If approved, the name will become official on June 1.
“We recognize the importance of establishing a new name and brand that reflects the values, purpose, and goals of New SRO,” Chair of the New SRO, Timothy Hodgson, wrote in the proxy. “Therefore, we have committed to an accelerated timeline to complete this important task and are confident that the chosen name will resonate with all stakeholders and foster a strong sense of confidence in the New SRO’s mission.
The shift to having a single SRO came after more than two years of industry consultation that began in 2019 when the Canadian Securities Administrators – an umbrella group for provincial and territorial securities regulators – announced it was considering an overhaul of the regulatory framework that governed IIROC and MFDA.
The two self-regulatory organizations had long been criticized by investor advocates and the investment industry for overlapping areas of oversight, as an increasing number of wealth managers served customers who buy both mutual funds and individual securities. In August, 2021, the merger was approved by the CSA, which also approved the combination of two investor protection funds – the Canadian Investor Protection Fund and the MFDA Investor Protection Corporation. The new single fund is independent from the new regulatory organization.