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Cision Canada
5 days ago
- Business
- Cision Canada
CSA consults on proposed process refinements and oversight for a dispute resolution service for investor complaints Français
TORONTO and VANCOUVER, BC, July 15, 2025 /CNW/ - The Canadian Securities Administrators (CSA) has provided for comment more details on the proposed framework for an independent dispute resolution service with binding authority – anticipated to be the Ombudsman for Banking Services and Investments (OBSI). The consultation includes a proposed oversight model for OBSI and refinements on the review and decision stage of the dispute resolution process. In light of the proposal to grant OBSI binding authority, the CSA is introducing an oversight framework that aims to balance OBSI's independence with the need for accountability. "Introducing binding authority for investment complaints is important to ensure investors have the ability to seek access to an impartial, fair and efficient dispute resolution process, and to give more certainty to businesses over the outcome of claims," said Stan Magidson, Chair of the CSA, and Chair and CEO of the Alberta Securities Commission. "The CSA's proposal will help modernize the structure of Canada's capital markets and simplify the complaints process for investors and businesses alike." In response to comments received during the 2023 consultation, the CSA is also proposing changes to the second stage review of the dispute resolution process for OBSI compensation recommendations for $75,000 or more. For these complaints, OBSI will be required to appoint external decision makers to review its recommendation before reaching a final decision. The comment period closes on September 15, 2025. Stakeholders are encouraged to submit their comments to the addresses in the notice and their local securities regulator. Implementation of a final framework is dependent on the governments of many CSA jurisdictions passing enabling legislation. The CSA, the council of the securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets. Notes to Editors: In November 2023, all members of the CSA published CSA Notice and Request for Comment – Registered Firm Requirements Pertaining to an Independent Dispute Resolution Service. CSA members other than the BC Securities Commission (BCSC) published for comment proposed amendments to certain complaint-handling provisions of NI 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, as well as proposed changes to Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations, which would form part of the proposed framework in those jurisdictions. While the BCSC did not participate in the publication of proposed amendments, it supports the outcomes intended by this project. British Columbia is considering legislative changes that may achieve the same outcomes as those intended by the proposals. The BCSC is interested in feedback about the oversight framework, the proposed refinements, and OBSI's limitation period, and will take comments into consideration. The CSA received comments about OBSI's six-year limitation period, given that some jurisdictions have a two-year limitation period. Commenters provided a range of views around time limits. The CSA is not proposing to change OBSI's six-year limitation period at this time. This consultation provides additional background about OBSI's limitation period and invites comments about it. In Québec, the Autorité des marchés financiers (AMF) is participating in the CSA consultation by proposing to maintain the exemption applicable to firms registered in Québec regarding dispute resolution services requirements. While OBSI would not be designated or recognized in Québec, OBSI's non-binding services would remain available in Québec along with the conciliation and mediation services that the AMF provides, pursuant to its governing legislation, to consumers of financial products and services, including retail investors. For media inquiries, please contact: For investor inquiries, please contact your local securities regulator.
CTV News
26-06-2025
- Business
- CTV News
Securities regulator proposes ending chargebacks in distribution of investment funds
A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a $20 bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, Wednesday, Sept. 4, 2024. THE CANADIAN PRESS/Justin Tang TORONTO — The Canadian Securities Administrators is proposing to stop the use of chargebacks in the distribution of investment funds. The regulatory group says investment dealers sometimes receive an upfront commission or payment when their client buys securities. It says chargebacks happen when those clients redeem those securities before a fixed schedule, requiring the dealer to pay back all or part of the upfront commission or payment. The CSA says it's concerned that poses a conflict of interest as it may incentivize advisers to prioritize their own interest over that of their clients. CSA chair Stan Magidson, who also is chair and CEO of the Alberta Securities Commission, says the proposed amendments prioritize investor protection and foster fairer compensation practices. The council of the securities regulators of Canada's provinces and territories has published the proposed amendments for a 90-day comment period, which closes on Sept. 24. --- This report by The Canadian Press was first published June 26, 2025.
Yahoo
26-06-2025
- Business
- Yahoo
Securities regulator proposes ending chargebacks in distribution of investment funds
TORONTO — The Canadian Securities Administrators is proposing to stop the use of chargebacks in the distribution of investment funds. The regulatory group says investment dealers sometimes receive an upfront commission or payment when their client buys securities. It says chargebacks happen when those clients redeem those securities before a fixed schedule, requiring the dealer to pay back all or part of the upfront commission or payment. The CSA says it's concerned that poses a conflict of interest as it may incentivize advisers to prioritize their own interest over that of their clients. CSA chair Stan Magidson, who also is chair and CEO of the Alberta Securities Commission, says the proposed amendments prioritize investor protection and foster fairer compensation practices. The council of the securities regulators of Canada's provinces and territories has published the proposed amendments for a 90-day comment period, which closes on Sept. 24. This report by The Canadian Press was first published June 26, 2025. The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
26-06-2025
- Business
- Cision Canada
Canadian securities regulators propose prohibiting the use of chargebacks in the distribution of investment funds Français
, June 26, 2025 /CNW/ - The Canadian Securities Administrators (CSA) has published, for a 90-day comment period, proposed amendments that would prohibit the use of chargebacks in the distribution of investment funds offered by prospectus. Dealers or dealing representatives sometimes receive an upfront commission or payment when their client purchases securities. Chargebacks occur when clients redeem their securities before a fixed schedule, and the dealing representative is required to pay back all or part of the upfront commission or payment. The CSA is concerned that the use of chargebacks poses an inherent significant conflict of interest as they may incentivize advisors to prioritize their own financial interest over that of their clients. "Prohibiting the use of chargebacks in the distribution of investment fund securities can further align investment advice with a client's best interest," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. "The proposed amendments prioritize investor protection and foster fairer compensation practices." The proposed amendments are in alignment with the 2025-2028 CSA Business Plan. Under the Business Plan, the CSA will propose and enact regulatory amendments, or other regulations, to ban chargebacks in the distribution of investment fund securities, not solely mutual funds, to improve investor protection and maintain investor confidence in Canadian capital markets. The proposed amendments are available on CSA members' websites. The comment period closes on September 24, 2025. The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets. For media inquiries, please contact: Ilana Kelemen Canadian Securities Administrators [email protected] Julia K. Mackenzie Ontario Securities Commission [email protected] Sylvain Théberge Autorité des marchés financiers [email protected] For investor inquiries, please contact your local securities regulator
Cision Canada
26-06-2025
- Business
- Cision Canada
CSA publishes 3-year Business Plan focused on competition and investor protection Français
CALGARY, AB, June 26, 2025 /CNW/ - The Canadian Securities Administrators (CSA) released today its 2025-2028 Business Plan setting out the priorities of its members for the next three years. The Plan highlights the CSA's ongoing commitment to responsive and harmonized regulation and is rooted in two overarching goals: to enhance the competitiveness of Canadian capital markets and to advance investor protection. The Plan recognizes the uncertain time Canadian businesses and investors are operating in. It focuses on four main areas that together provide a stable, unified and trusted foundation for Canada's capital markets: Capital markets: The CSA will maintain a regulatory framework that supports efficient, effective and globally competitive capital markets in Canada. Investors: The CSA will continue to advance investor protection and enhance investor confidence in the markets, both of which are pivotal to market integrity and long-term resilience. Innovation and technology: The CSA will encourage positive and responsible innovation in the capital markets, while providing regulation that keeps pace with the evolving business realities of market participants. Systemic risk: The CSA will remain focused on identifying, assessing and responding to risks that could affect the stability of Canada's financial markets or the broader economy. "Our Business Plan sets out ambitious initiatives to support our markets, businesses, and investors," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission (ASC). "It reflects the challenges of today's global economy, changing investor expectations and rapid technological change. Now more than ever, Canadian regulators must work together to be proactive, thoughtful and adaptable stewards of our capital markets." The 2025-2028 Business Plan also coincides with the re-appointments of CSA Chair Stan Magidson, Chair and CEO of the ASC, and CSA Vice-Chair David Cheop, Chair and CEO of the Manitoba Securities Commission. Grant Vingoe, CEO of the Ontario Securities Commission, was also renewed as Chair of the Policy Coordination Committee. While the CSA works to deliver the strategic goals within the Plan, it will also remain agile to address new issues and challenges presented by evolving capital market conditions. The CSA, the council of securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets. For media inquiries, please contact:
