News Release

IFIC responds to CSA proposal to form regulatory framework related to independent dispute-resolution service

IFIC proposes revisions to assist the CSA achieve its regulatory goals 

March 1, 2024 (Toronto) – The Investment Funds Institute of Canada (IFIC) has made a submission to the Canadian Securities Administrators (CSA) in response to their proposal to create a new regulatory framework that would give an independent dispute-resolution service (IDRS) authority to make binding decisions.

“For the dispute resolution system to be fair, efficient and accessible for all Canadian investors, it must be harmonized across all provinces and territories, simplified and streamlined, and have fair processes for both firms and investors,” said Andy Mitchell, President and CEO, IFIC. “We have provided proposed revisions to help achieve these objectives.”

In its submission, IFIC also recommends a statutory right of appeal for IDRS decisions that involve compensation of $35,000 or above unless the investor abandons the process or commences litigation before the IDRS issues its final decision. The statutory right of appeal should be made to another independent third party, such as a division within the CSA or the Canadian Investment Regulatory Organization (CIRO). IFIC also recommends that the investor and firm should be treated the same way with regard to IDRS’ final decision and post-final decision mechanisms.

In addition to these proposed revisions, IFIC strongly recommends that, in the near future, the CSA redesign the overall complaint-handling and dispute-resolution process to make it fully harmonized, non-fractured, streamlined, and simplified. This could provide greater certainty for both parties in a dispute, while also reducing regulatory burden, which leads to overall increased costs for all stakeholders.

About IFIC

The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together approximately 150 organizations, including fund managers, dealers, professional and back-office service providers, to strengthen the integrity of the investment funds industry, foster public confidence in investment funds, and enable investors to achieve good outcomes. By connecting savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation.

For more information, please contact:

Christine Harminc
Senior Manager, Communications and Public Affairs
charminc@ific.ca
416-309-2313