Securities enforcement by state regulators. The US North American Securities Administrators Association published its annual enforcement survey. It noted a significant increase in the amount of time securities law violators were sentenced to prison in 2013 as a result of enforcement actions initiated by state securities regulators. State enforcement actions also resulted in $616 million returned to investors and $72 million in fines or penalties. (9/29/2014) NASAA press release.
OSC expectations. The Ontario Securities Commission published its Annual Summary Report, setting out its expectations for firms and individuals directly regulated by the OSC. (9/25/2014) OSC press release.
ISDA launches counterparty classification tool for Canadian derivatives trades. The International Swaps and Derivatives Association and Markit announced the launch of the ISDA Canadian Representation Letter on ISDA Amend, a joint electronic solution that streamlines aspects of compliance with Dodd-Frank, EMIR and other over-the-counter derivatives regulatory requirements. (9/24/2014) ISDA press release.
OSC designates three firms as trade repositories. The Ontario Securities Commission announced the designation of the Chicago Mercantile Exchange Inc., DTCC Data Repository (U.S.) LLC and Ice Trade Vault, LLC as trade repositories. The OSC has coordinated with the Autorité des marchés financiers and the Manitoba Securities Commission in finalizing the designations. (9/23/2014) OSC press release.
CSA announces research into mutual fund fee structure. The Canadian Securities Administrators announced that two research contracts have been awarded that will further the review of Canada’s mutual fund fee structure. The CSA has selected Douglas J. Cumming, Professor of Finance and Entrepreneurship and the Ontario Research Chair at the Schulich School of Business, York University to collect and review data on whether sales and trailing commissions influence fund sales. As part of his research, Professor Cumming will be requesting data from a representative sample of investment fund managers in the coming months. In addition to this research, the Brondesbury Group will conduct a literature review to assess whether the use of fee-based versus commission-based compensation changes the nature of advice and investment outcomes over the long term. The research reports by Professor Cumming and the Brondesbury Group are expected to be completed and made publicly available in the first quarter of 2015. (9/19/2014) CSA press release.