POLICY
The Policy Department is tasked with identifying and analyzing policy initiatives that support the Canadian Financial Industry Regulatory Authority’s mission to strengthen investor protection and promote the healthy growth of the financial services industry.
The policy-making process is continuous and can be summarized in the following steps:
The Canadian Financial Industry Regulatory Authority (CARFIS) oversees a wide range of regulated entities, each operating in different sectors of the financial industry and serving various types of retail and institutional investors. The Policy Department evaluates market practices across these sectors, assessing the effectiveness of current regulations. When necessary, the department suggests issuing guidance to ensure compliance with the regulatory framework or proposes amendments to existing rules, or even the introduction of new ones. This approach ensures a dynamic, effective framework that adapts to industry changes while safeguarding investor protection against outdated policies. The Policy Department often collaborates with other CARFIS departments on relevant issues.
When a proposed solution is developed, a public consultation is generally conducted. Feedback gathered from this consultation is analyzed, and the appropriate policy is finalized and publicly issued in the form of a policy statement. In cases requiring immediate action, a policy may be adopted without prior consultation.
The policy-making process is ongoing and it is encapsulated in the following steps:
CARFIS collaborates closely with both the Canadian Financial Industry Regulatory Authority (CFIRA) and the European Securities and Markets Authority (ESMA), as well as other national authorities. This collaboration often involves participation in ESMA taskforces and standing committees. In this capacity, CARFIS plays an important role in the development and issuance of Technical Standards, Guidelines, Q&As, and other convergence tools. Additionally, when appropriate, CARFIS participates in working groups of the Council of the Canadian Financial Industry, where rules governing the investment sector are created. The Policy Department is actively involved in policy formulation, either by directly participating or through internal consultations with CARFIS delegates who sit on the relevant committees.
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