CANADIAN REGULATORS

Financial institutions in Canada are regulated at either the federal or provincial level, or a combination of both. Banks and insurance federally incorporated insurance companies are regulated at the federal level. However securities dealers and provincially incorporated companies are regulated at the provincial level. 

The Wise Persons Committee report issued December 2003 reviewed the regulatory system and strongly recommended establishing a single national regulator. However, there still exists opinion that there is a need for regional regulators to accommodate regional needs.

There are efforts to "harmonize" provincial regulation and to develop "uniform securities laws" for provincial jurisdictions. In 1999 the Joint Forum was founded by the Canadian Council of Insurance Regulators (CCIR), the Canadian Securities Administrators (CSA), and the Canadian Association of Pension Supervisory Authorities (CAPSA). It also includes representation from the Canadian Insurance Services Regulatory Organizations (CISRO).

The Joint Forum (www.jointforum.ca) was established as a mechanism through which pension, securities and insurance regulators could co-ordinate, harmonize and streamline the regulation of financial products and services in Canada. Their goal is continuous improvement of the financial services regulatory system through greater harmonization and coordination of regulatory approaches.

Canada's financial regulators are outlined below: 

Federal regulators

The Financial Consumer Agency of Canada (FCAC) is responsible for enforcing many of the federal laws that protect consumers in their dealings with financial institutions. The FCAC has a responsibility to ensure that federally regulated financial institutions comply with federal consumer protection laws and regulations, and is one of three agencies regulating the activities of financial institutions under federal jurisdiction. 

The Office of the Superintendent of Financial Institutions (OSFI) is the regulator in charge of supervising the financial health and stability of federal financial institutions. These include all banks and all federally incorporated or registered insurance companies, trust and loan companies, co-operative credit associations, and fraternal benefit societies. 

The OSFI monitors these institutions on an ongoing basis to ensure certain operational requirements are met, such as having sufficient capital resources, liquidity levels and loan loss provisions. The OSFI conducts on-site reviews and uses its supervisory powers to take action in situations of gross breach of rules or in case of practices creating excessive risks.

The Canada Deposit Insurance Corporation (CDIC) - CDIC insures your deposits in case a member institution becomes insolvent, subject to eligibility criteria and maximum coverage. The maximum basic protection you can have with one member institution is $60,000 including principal and interest. The $60,000 maximum includes all the insurable deposits you have with the same CDIC member. Deposits at different branches of the same member institution are not insured separately.You do not apply for deposit insurance; eligible deposits held with CDIC member institutions are automatically protected.

Provincial and territorial regulators

Every province and territory has one or more bodies to regulate financial institutions under provincial responsibility. These institutions include securities dealers, credit unions and caisses populaires, as well as other financial institutions that are registered or incorporated at the provincial level.

The regulation of the securities industry is a provincial responsibility and each province has its securities commission or administrator that is generally accountable to the Provincial Ministry of Finance. However these provincial regulators participate in an organization called the Canadian Securities Administrators (CSA).

The CSA is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets. The CSA has a mission to give Canada a securities regulatory system that protects investors from unfair, improper or fraudulent practices and fosters fair, efficient and vibrant capital markets, through developing the Canadian Securities Regulatory System (CSRS), a national system of harmonized securities regulation, policy and practice.

The CSA has introduced an alphabetical list of disciplined persons for all of Canada. Ontario is not yet participating but is expected to be included in the near future. Consumer/investors can check whether their representatives have been disciplined on this website.

The provincial securities commissions have delegated some of the regulation to self regulatory organizations (SRO) such as the Investment Dealers Association (IDA) and the Mutual Fund Dealers Association (MFDA). The IDA is responsible for regulating those firms that are members of the IDA. The MFDA regulates the firms that are members of the MFDA.

The mandate of the regulators is to ensure that the rules and regulations are followed. They are empowered to investigate and to hold hearings, however that power has certain limitations. They do not have the power to order restitution. So if you have a complaint, the regulators can't get your money back. You will need to pursue other options.

Alberta

• Alberta Treasury
• Alberta Securities Commission

British Columbia

• Financial Institutions Commission
• British Columbia Securities Commission

Manitoba

• Manitoba Consumer and Corporate Affairs
• Manitoba Securities Commission

New Brunswick

• New Brunswick Securities Commission

Newfoundland and Labrador

• Department of Government Services and Lands, Commercial and Corporate Affairs Branch

Northwest Territories

• Superintendent of Insurance, Government of the Northwest Territories

Nova Scotia

• Department of Environment and Labour, Financial Institutions Division
• Nova Scotia Securities Commission

Nunavut

• Government of Nunavut

Ontario

• Financial Services Commission of Ontario
• Ontario Securities Commission

Prince Edward Island

• Attorney General, Consumer, Corporate and Insurance Division

Quebec

• Autorité des marchés financiers

Saskatchewan

• Saskatchewan Justice, Consumer Protection Branch
• Saskatchewan Financial Services Commission

Yukon

• Government of Yukon

Self-regulatory organizations (SROs)

The following organizations have been given the power and responsibility to regulate the activities of their members:

• Investment Dealers Association (IDA) -  The IDA is a national self regulatory organization charged with monitoring the activities of its member firms and investigating complaints against member brokers. The IDA is not empowered to order restitution. The IDA's mandatory arbitration program is now available in most provinces across Canada provided certain criteria are met.
• Mutual Fund Dealers Association (MFDA) - The Mutual Fund Dealers Association is a newly formed self regulatory organization responsible for regulating all sales of mutual funds. It will be a requirement for all sellers of mutual funds to become members of the MFDA. The MFDA will not regulate the funds or the fund manufacturers. That responsibility will remain with the provincial securities commissions.
• Market Regulation Services Inc. (RS) - Market Regulation Services Inc. (RS) is the independent regulation services provider for Canadian equity markets, including the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSX V), Bloomberg Tradebook Canada Company (Bloomberg) and Canadian Trading and Quotation System (CNQ). Market Regulation Services Inc. helps protect investors and ensure market integrity by regulating trading on these marketplaces to ensure transactions are executed properly, fairly and in compliance with trading rules.

Stock exchanges

The following are Canada's stock exchanges:

• Montréal Exchange - The Exchange has its mandate as Canada's financial derivatives market, and is recognized by the Commission des valeurs mobilières du Québec (CVMQ) as a self-regulatory organization. The Exchange offers both individual and institutional investors a wide range of equity, interest rate and index derivatives. 
• Toronto Stock Exchange (TSX) - The Toronto Stock Exchange (TSX) is Canada's senior equities market, consisting of a broad cross-section of Canadian issuers.
• TSX Venture Exchange (TSX V) - The TSX Venture Exchange (TSX VN) serves Canada's public venture equity market.
• Bloomberg Tradebook - Bloomberg Tradebook Canada Company (Bloomberg) is an alternative trading system that operates an electronic trading and order-routing system that allows Canadian institution investors to trade in equity and fixed income securities domestically and internationally.
• Canadian Trading & Quotation System (CNQ - Canadian Trading and Quotation System (CNQ) provides for quotation and trading of securities issued by small-capitalized companies.