Weekly Wrap: The Regulator Beat

Weekly Wrap: The Regulator Beat

Weekly Wrap: The Regulator Beat
CSA extends use of OBSI for client complaints

The Canadian Securities Administrators (CSA) will require registered dealers and advisors to use the Ombudsman for Banking Services and Investments (OBSI) to resolve client complaints. In a notice issued Thursday, the CSA stated the service would allow investors to access a free, independent and consistent dispute resolution service. The amendments extend to firms – such as exempt market firms and scholarship plan dealers – other than dealers of self-regulatory organizations (SRO), who already use OBSI. Dealers are required to inform clients in writing about the service.

OSFI revised regulatory-risk guidelines for financial firms

The Office of the Superintendent of Financial Institutions (OSFI) released guidelines – open for comment until June 20 – on how to manage regulatory compliance risk at federally-regulated financial firms. The guidelines are being updated to align with principles outlined by the Basel Committee on Banking Supervision for managing operational risk; principles of the International Association of Insurance Supervisors; and OSFI's corporate governance guidelines, updated last year.

Global regulator released POS disclosure guidance

A group of global regulators, called Joint Forum, has released a report stating that point of sale (POS) disclosure should be provided upfront in clear, concise documents. The group – which includes banking, insurance, and securities regulators – included various recommendations on POS disclosure for investment and savings products across the three sectors. These include using plain language, setting out key information such as product’s cost, risks and features and standardizing to facilitate comparisons. The group also feels that the POS disclosure should be provided free to consumers, before a sale is made.

OSC investor advisory panel approves of CSA Fund Facts disclosure

The Ontario Securities Commission's (OSC) Investor Advisory Panel (IAP) stated in a letter to the Canadian Securities Administrators' (CSA) this week that it supports the move to require pre-sale delivery of the new Fund Facts disclosure documents. The regulatory panel believes the disclosure regime will improve client-advisor relationships and investor results, calling it "meaningful." The Fund Facts disclosure regime - created to make disclosure clearer and more useful, while helping investors compare the features of mutual funds and segregated funds - was initially criticized for its pre-sale delivery requirments. The CSA adopted a staged approach in response to the critique, but is now proposing the requirement of pre-sale delivery for all mutual fund sales, with a limited exception when clients demand immediate trade execution.

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Weekly Wrap: The Regulator Beat

Weekly Wrap: The Regulator Beat