The Canadian Investment Regulatory Organization (CIRO) published proposed amendments for rules relating to fully paid securities lending and financing arrangements.
The proposed amendments include:
- enhance the rule framework regarding retail fully paid securities lending,
- carry out CIRO’s commitment to update its rules to address lessons learned from Dealer Members offering fully paid lending programs, and
- address a few inconsistencies in the existing financing arrangements rules.
CIRO believes the amendments will have a positive impact on investors, institutional and retail, and Dealer Members because they:
- codify and clarify measures that are intended to protect retail investors,
- enhance procedural efficiency, including by removing the need for board exemptions,
- enable flexibility with regard to different lending models and client types,
- add clarity and consistency.
CIRO also published the revised Guidance on Fully Paid Securities Lending (Draft FPL Guidance), which will replace the existing guidance.