ANTI-MONEY LAUNDERING (AML)
Financial services firms follow an extensive process to verify client identity to prevent suspicious transactions. They also monitor transactions and have various measures in place to identify money laundering and terrorist financing risks.
The IIAC advocates on behalf of members to ensure Canada’s AML regulatory regime is robust, effective and proportionate.
IIAC Contact: Jasmin Jabri (JJabri@iiac.ca)
CLEARING AND SETTLEMENT INFRASTRUCTURE
Canada’s clearing and settlement systems underpin our capital markets and investment industry. The IIAC and its members provide regular input to critical systems, including the Canadian Depository for Securities (CDS) and the Canadian Derivatives Corporation (CDCC). This industry input is essential to ensuring the efficiency and technology-based modernization of these systems.
The IIAC has worked in collaboration with CDCC to design and launch the fixed income and repo central counterparty (CCP). Efforts continue to expand the services and clearing opportunities available through the CCP.
IIAC Contact: Jack Rando (JRando@iiac.ca)
CYBERSECURITY
Financial services firms seek to develop and maintain comprehensive cyber security plans to protect their clients from a cyber attack or data breach.
The IIAC has hosted Cyber Security Conferences and continues to offer webinars to help members address the evolving cyber threats.
The IIAC also contributes to the Financial Services-Information Sharing and Analysis Center (FS-ISAC) monthly highlighting cybersecurity topics including emerging threats.
The IIAC’s Data/Privacy Committee responds to legislative and regulatory initiatives to ensure privacy legislation protects vital client information while business is effectively and efficiently conducted. The IIAC develops tools, templates and practices to assist firms in the protection of client information.
IIAC Contact: Adrian Walrath (AWalrath@iiac.ca)
DEBT MARKETS DEVELOPMENTS
The IIAC closely follows developments impacting the structure and functioning of Canadian bond and money markets. The IIAC collaborates regularly with policy makers, government officials, regulators, market participants and industry service providers to identify and address issues of importance. Current areas include: benchmark reforms, electronic trading in fixed-income markets, settlement practices, central clearing, debt market transparency and surveillance.
The IIAC’s Debt Markets Committee represents the securities industry’s position on policy and regulatory proposals related to activity in primary and secondary debt markets.
The IIAC MBS Committee focuses on issues impacting the issuance and trading of Mortgage-backed securities.
The IIAC Repo Committee devotes attention to increasing the efficiency of securities lending and collateral mobilization within Canada.
IIAC Contacts: Todd Evans (TEvans@iiac.ca) and Jack Rando (JRando@iiac.ca)
DEPOSIT INSTRUMENTS
IIAC members are among the largest distributors of deposit instruments such as GICs and High Interest Savings Accounts (HISAs). Effective April 30, 2022, new regulations from The Canada Deposit Insurance Corporation (CDIC) come into effect impacting all Nominee Brokers that distribute these products. The IIAC has prepared a summary document for members outlining some of the new CDIC requirements.
The IIAC participates in CDIC’s Brokered Deposit Advisory Group (BDAG) and several of its sub-groups which have been established to develop industry guidance and resources to assist with implementing the new requirements. The IIAC has contributed to several of these resources to ensure IIAC member views are properly reflected. The IIAC will continue working with members in the lead up to the CDIC implementation to ensure awareness of the new requirements and to obtain any necessary clarifications from CDIC.
IIAC Contact: Jack Rando (JRando@iiac.ca)
DERIVATIVES
The IIAC works closely with members on identifying and addressing issues impacting exchange traded derivatives. The IIAC collaborates regularly with the Montreal Exchange and its regulatory division to provide industry perspectives on proposed market and regulatory initiatives. Recent and current topic areas have included: Client Identifiers, Margining, Trade Markers, Segregation and Portability of Collateral.
IIAC Contact: Jack Rando (JRando@iiac.ca)
ESG/ SUSTAINABILITY
Over the last several years, the IIAC has focused on providing its members with current and timely thought leadership pieces and led conferences and webinars in the rapidly growing and evolving ESG and sustainability market sector.
In an ongoing series of conferences, the IIAC has assembled Canadian and international experts to share their expertise and insights on issuance and investment opportunities in the ESG, green bond, and transition bond markets. The IIAC is forming a dedicated ESG Committee that will work on ESG and sustainability issues and their associated impacts to the capital markets sector.
The IIAC will continue to update and work with its members on taxonomy developments and disclosure requirements which are geared towards creating uniform standards and guidelines globally and in Canada.
IIAC Contact: Todd Evans (TEvans@iiac.ca)
FINTECH: INNOVATION SOLUTIONS
The IIAC contributes to knowledge and awareness surrounding the rapidly growing FinTech/RegTech/InsurTech/WealthTech and other technology based landscapes by providing a forum for the sharing and development of practical tips, best practices and for the identification of future areas of growth and development.
We work with regulators and legislators to address their responses to the quickly evolving and broadening FinTech/ RegTech/InsurTech/Wealth Tech environment in a manner that ensures investors and capital markets are best served.
As part of its efforts, the IIAC hosts conferences and webinars on topics including Open Banking, Artificial Intelligence and Digital Assets.
IIAC Contact: Adrian Walrath (AWalrath@iiac.ca)
INVESTMENT BANKING
The IIAC Investment Banking Committee shares and develops industry best practices and templates to assist members and to provide a framework for consistency in the Canadian marketplace.
The Committee also actively monitors regulatory developments undertaken by the CSA, IIROC and other regulators that affect the ability and means by which firms can raise funds and undertake transactions to grow their businesses. Such developments include matters such as new and amended prospectus exemptions, disclosure requirements, and underwriter due diligence.
IIAC Contacts: Tim Currie (TCurrie@iiac.ca) and Todd Evans (TEvans@iiac.ca)
INVESTMENT MANAGEMENT
The IIAC Investment Management Compliance Committee addresses all matters related to investment management, including investment funds, ETFs and other products manufactured for distribution by retail and wholesale dealers.
IIAC Contact: Jasmin Jabri (JJabri@iiac.ca)
MARKET DATA FEES
The IIAC continues to advocate for our members, both domestically and internationally, through a partnership with international securities associations to address the issue of inflated and increasing market data fees originating from marketplaces as well as other market data vendors.
IIAC Contact: Adrian Walrath (AWalrath@iiac.ca)
SRO REFORM
The IIAC encourages and supports CSA efforts to achieve a harmonious transition to a fresh SRO. The fresh SRO should be connected to evolving investor needs with minimal bureaucracy and disruption to the capital markets. A summary of our recommendations is found here. Our full submission is found here.
IIAC Contacts: Tim Currie (TCurrie@iiac.ca) and Adrian Walrath (AWalrath@iiac.ca)
TAX
IIAC members prepare and issue millions of tax slips to clients each year. The IIAC monitors and responds to tax slip changes announced by the CRA and other tax authorities to ensure tax reporting obligations of member firms are clear and proportionate. The IIAC seeks to ensure that member firms have sufficient time to adapt to changes and put in place systems that allow them to meet their reporting obligations.
The IIAC, in collaboration with CDS, administers the online tax-reporting facility relied on by members for collecting necessary tax information from issuers, including Income Trusts, ETFs, LPs, etc.
The Common Reporting Standard (CRS) requires financial institutions to provide the CRA detailed client financial account information (including account balances, interest, dividends, and sales proceeds from financial assets). The CRA exchanges that information with other jurisdictions annually to combat cross-border tax evasion and protect the integrity of the tax systems. The IIAC continually monitors and responds to changes to CRS requirements and actively works with firms on compliance related issues.
The Foreign Account Tax Compliance Act (FATCA) is U.S. legislation intended to detect U.S. persons who are evading U.S. tax using financial accounts held outside of the U.S. Under FATCA, non-U.S. financial institutions are required to report relevant information to the U.S. tax authorities on financial accounts held by identified U.S. persons. If a non-U.S. financial institution fails to comply with FATCA, the IRS can impose a 30 percent withholding tax on U.S.-source payments paid to the financial institution or its clients.
The IIAC continually monitors and responds to changes to FATCA requirements and actively works with firms on compliance related issues.
IIAC Contacts: Jack Rando (JRando@iiac.ca) (Canada) and Adrian Walrath (AWalrath@iiac.ca) (International)
WEALTH MANAGEMENT
The IIAC addresses a wide variety of issues related to the delivery of wealth management services including wealth transfer issues such as those related to aging or vulnerable investors.
Financial Planning Services
Individuals providing financial planning services to investors should be properly qualified. The CSA and SROs ensure our members have the necessary proficiency for the financial planning services they provide and use the appropriate professional titles in providing their services.
Ontario, Saskatchewan and New Brunswick are at various stages of creating additional statutory and regulatory requirements surrounding the usage of financial planner/financial advisor titles. These provincial initiatives unfortunately cause investor confusion and unnecessary duplication, which the IIAC advocates to minimize and address.
IIAC Contact: Tim Currie (TCurrie@iiac.ca)
Insurance
The IIAC address the manufacturing and distribution of insurance wealth products.
IIAC Contact: Adrian Walrath (AWalrath@iiac.ca)
OEO Dealers
The IIAC continually works with its members who seek to ensure the needs of self-directed investors are met.
IIAC Contact: Adrian Walrath (AWalrath@iiac.ca)