IIAC Blog

June 18, 2018 by Ian Russell

Speech by Bank of Canada Deputy Governor (IIAC Blog)

Ian Russell, President & CEO, Investment Industry Association of Canada (IIAC); Lynn Patterson, Deputy Governor, Bank of Canada; Charyl Galpin, Chair, IIAC Board of Directors; and Hung Tran, Executive Managing Director, Institute of International Finance (IIF).

It was an honour for the IIAC to host Bank of Canada Deputy Governor Lynn Patterson at a luncheon in Toronto today. She spoke about interest-rate benchmarks and the work underway in Canada and globally to strengthen them.

Interest rate benchmark reform is important to our clients in the financial sector and to the safety and stability of global financial markets. Millions of financial contracts valued in the trillions of dollars rest on these reference rates and affect many of our clients that do business across nearly all asset classes, including derivatives, bonds, loans and other financial instruments. Robust benchmarks are also important because they facilitate the standardization of financial contracts, leading to lower transaction costs and enhanced market liquidity.

If a new risk-free term benchmark is developed, market adoption will be critical. For firms in our industry, transitioning to new benchmarks means adapting trading and risk systems and back-office processes.

You can read the Deputy Governor’s speech or watch a video webcasts of the speech.

 

June 6, 2018 by Ian Russell

Charyl Galpin of BMO Wealth Management Re-Appointed IIAC Board Chair (IIAC Blog)

At its Annual General Meeting in Montreal today, the Investment Industry Association of Canada (IIAC) announced its 2018-19 Board of Directors, including the re-appointment of Charyl Galpin, Chief Regulatory Officer, BMO Wealth Management, as IIAC Board Chair, and Steven Donald, Executive Vice-President, CI Financial Corp., as Vice-Chair.

“I am honoured to continue serving as Chair of the IIAC,” Galpin said. “I look forward to working with our Board to ensure the IIAC remains an effective advocate for member firms, fighting for efficient regulation and capital markets, promoting capital formation and supporting members with services and resources to help ensure their success,” she added.

“Our Board’s experience and expertise will be a tremendous asset as the IIAC continues to lead Canada’s investment industry through sweeping regulatory reform and technology-driven transformation of business operations in response to client demand and competitive pressures,” said Ian Russell, IIAC President and CEO.

Click here to see the list of 2018-19 IIAC Board of Directors.

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June 5, 2018 by Ian Russell

Private Corporation Tax Proposals Could Make Financing Conditions Worse for Small Business (IIAC Blog)

Ian Russell

The June 2018 IIAC Letter from the President focuses on the proposed tax treatment of passive investment income in Canadian-controlled private corporations and the implications for small business financing.

Roughly 50,000 large private corporations are negatively impacted by the proposals, many of them deeply integrated into the small and mid-sized business sector, engaged in debt and equity financing, strategic corporate advisory services, and merchant banking. The government’s proposed measures will discourage them from undertaking these types of activities, constricting the already scarce flow of capital to new and emerging enterprises.

My Letter offers a number of recommendations to mitigate the negative impact of the proposed changes. You can access it here.

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May 30, 2018 by Ian Russell

Infographic: Canada’s Investment Industry (IIAC Blog)

Ian Russell

The Canadian investment industry plays a key role in Canada’s financial services sector. It enables businesses and governments to raise debt and equity capital—which stimulates economic growth and job creation—and helps investors and savers meet their financial objectives.

Did you know in 2017, Canada’s investment industry?

Directly employed approximately 40,865 Canadians from coast to coast to coast.

Generated $22.6 billion in direct economic activity.

Helped listed Canadian businesses raise $77.1 billion in equity capital in secondary offerings in public and private markets.

Helped 38 companies go public, raising $5.1 billion in initial public offerings.

Enabled Canadian businesses to raise $108.1 billion by issuing bonds to finance operations.

Enabled the federal, provincial and municipal governments to raise $203.8 billion through debt issuance.

Check out our infographic to learn more.

April 30, 2018 by Ian Russell

Opportunities in the Canadian Green Bond Market (IIAC Blog)

Ian Russell

The IIAC is conducting research on opportunities in the Canadian green bond market. Green bonds, issued by public and/or private entities, fund projects that are certified to have positive environmental and/or climate benefits.

As a first step, we have released a position paper that serves as an introduction on the underlying features of the global and Canadian marketplace for green bonds. The paper includes information on:

The size of the global market and major players.

Projects that take up the largest share of green bond funds.

Current and prospective Canadian green bond issuers.

Canadian market dynamics to date in 2018.

The IIAC paper will be updated in early summer, 2018 to include recommendations, developed in consultation with the IIAC’s Debt Markets Committee and debt syndicate working group, to promote the development of a more liquid green bond market in Canada.

For more information, please contact Todd Evans (tevans@iiac.ca)

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April 30, 2018 by Ian Russell

IIAC Cyber Education Series (IIAC Blog)

Ian Russell

In collaboration with NPC, Miller Thomson LLP and FleishmanHillard HighRoad, the IIAC is proud to bring to our members the IIAC Cyber Education Series of webinars and presentations.

We are launching with a webinar titled “Ransomware, BEC and Cyberjacking – The New Front of the Cyber War: Defense Strategies for Companies Large and Small” presented by Larry Keating, President and CEO, NPC DataGuard. You can view it here.

This will be followed by a webinar on “Incident Response Planning”, expected in late June 2018.

 

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April 16, 2018 by Ian Russell

IIAC Responds to Ontario Government Consultation Paper on Regulation of Financial Planners (IIAC Blog)

Ian Russell

The IIAC submitted a comment letter to the Ontario government on its Consultation Paper, Regulation of Financial Planners. In our submission, the IIAC responded to questions surrounding the proposals to restrict the use of the “Financial Planner” title in Ontario, prohibit titles similar to “Financial Planner” and create a central, publicly-accessible database of financial planners.

You can read our submission here.

For more information, please contact Michelle Alexander, malexander@iiac.ca

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April 4, 2018 by Ian Russell

IIAC Comments on BCSC FinTech Regulation Consultation Paper (IIAC Blog)

Ian Russell

The IIAC was pleased to offer comments on British Columbia Securities Commission (BCSC) Notice 2018/01Consulting on the Securities Law Framework for Fintech Regulation (the “consultation paper”). The IIAC appreciates input received from members, industry experts and Fintech firms.

Fintech has the potential to add efficiencies and introduce a new competitive element to the industry, as well as fundamentally change the structure of the industry insofar as how firms, clients, vendors, and regulators interact. As innovation progresses, regulation needs to keep pace in order to facilitate business operations.

In this regard, the IIAC recommended that regulators:

Take a very broad view of the regulatory landscape as it applies to all entities providing financial services to clients (including those outside the jurisdiction of provincial regulators), rather than the current silo’d approach to the delivery of services.

Impose consistent regulatory standards on entities that undertake (digitally or manually) the same or similar activities, be they a registered firm or Fintech provider. This may necessitate imposing existing regulation on Fintech providers for certain functions, or reducing the regulatory burden for existing registrants for certain functions, to ensure a level playing field.

Allowing for more automated solutions to permit clients to move between the digital and traditional advice platforms would ultimately increase accessibility of advice, as it would reduce the friction between platforms by reducing dealer cost and investor inconvenience associated with starting from scratch with a new advisor on a different platform.

The IIAC provided additional comments on matters such as crowdfunding, digital advice, cryptocurrency and Initial Coin Offerings (ICOs).

For more information, read our submission, or contact Susan Copland, scopland@iiac.ca.

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March 27, 2018 by Ian Russell

President & CEO Testifies Before House of Commons Finance Committee re: Canada’s AML/ATF Regime (IIAC Blog)

IIAC President and CEO, Ian Russell, testified before the House of Commons Standing Committee on Finance on the five-year statutory review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

In light of important obligations member firms have under the PCMLTFA and its Regulations, he made a number of recommendations to improve the effectiveness of the legislative framework, facilitate the obligations of reporting entities, and minimize the compliance burden. Among the recommendations, he called on the federal government to:

Work with the provinces and territories to harmonize beneficial ownership information standards across Canada and in federal and provincial/territorial statutes.

Create a central registry that contains current and accurate information with respect to beneficial ownership.

Amend legislation under subsection 62(2) to provide an exception from record-keeping and identity verification requirements for foreign institutions registered with securities authorities in certain jurisdictions, for example, the U.S. and the UK.

He also made a number of recommendations specific to FINTRAC.

His testimony is available here:

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March 27, 2018 by Ian Russell

Canada’s Investment Industry: A Year in Review (IIAC Blog)

Ian Russell

My latest Letter from the President examines year-end 2017 securities industry statistics, the challenges faced by large and small investment dealers, and the outlook for the mainline businesses and firm groupings.

Overall, the industry turned in a mixed earnings performance last year. Fee-based business powered retail earnings. The self-clearing retail firms recorded the highest earnings in three years, while the institutional boutiques fared the worst. Falling share values contributed to weak investment banking results in the last months of 2017, and dragged down earnings at the integrated dealers, even though corporate advisory fees held up remarkably well. Fixed income trading at the integrated dealers turned in a sub-par year.

Looking ahead, 2018 will be marked by continued economic and business uncertainties, greater market volatility and reduced capital-raising by small and mid-sized firms, reflecting weak resource markets. The wealth management business, at both large and small firms, will drive industry performance, though handicapped by continued increases in operating costs.

Structural change will remain an overarching theme going forward, driven by firm amalgamation and withdrawals and the adaption of FinTech to expand product offerings, improve efficiencies and broaden reach through digitalization.

To read more on the trends impacting our industry, and to get a breakdown of industry performance, please click here.

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