Canadian Securities Administrators proceed with delegation of registration and oversight functions to Canadian Investment Regulatory Organization

On March 18, 2025, the Canadian Securities Administrators (“CSA”) announced they are proceeding with delegating additional registration and oversight functions to the Canadian Investment Regulatory Organization (“CIRO”). In an effort to keep market participants informed of developments, the CSA has launched an online resource where readers can find up-to-date information on the delegation process in their jurisdiction.

Background

In November 2024, the CSA announced that it was considering delegating certain registration functions to CIRO, in an effort to create efficiencies and reduce regulatory burden. As CIRO currently performs registration functions under delegated authority in some Canadian jurisdictions, the further delegation would create a consistent and harmonized approach across the country.

The proposed delegation is likely to relate solely to investment dealers and mutual fund dealers, while portfolio managers, investment fund managers, exempt market dealers, restricted dealers, restricted portfolio managers and scholarship dealers will remain under the oversight of their principal regulator.

If implemented, CIRO may assume delegated responsibility for routine applications of investment dealers and mutual fund dealers.

Implementation

Delegation of certain functions has already been implemented by the Ontario Securities Commission (the “OSC”), pursuant to a delegation order dated March 7, 2025. The delegation takes effect April 1, 2025. The delegated responsibilities include:

• applications for registration of firms in the category of investment dealer, mutual fund dealer and futures commission merchant;
• applications for registration of individuals, with firms registered in the category of investment dealer, mutual fund dealer and futures commission merchant;
• applications for surrender of registration;
• notices under section 11.9 and 11.10 relating to acquisitions of securities or assets of a registered firm under National Instrument 31-103 (“NI 31-103”) as they relate to investment dealers, mutual fund dealers, or their respective registered individuals; and
• applications for exemptive relief from the individual registration requirements under NI 31-103 for individuals required to be registered in the categories of dealing representative and chief compliance officer of a registered mutual fund dealer.

The OSC delegation order is subject to extensive terms and conditions, including the requirement for CIRO to notify the OSC with respect to any firm registration matter where, in CIRO’s opinion, an application or submission raises “significant or novel issues” (as defined in the delegation order). CIRO must not make a final determination in a firm registration matter raising significant or novel issues until the OSC has notified CIRO that it has no further questions or comments.

According to the CSA’s online resource, delegations are expected to become effective in Alberta, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island and Yukon on April 1, 2025.

Delegations in Quebec, Manitoba, Saskatchewan and British Columbia will become effective at a date to be determined.