The Canadian Securities Administrators has summed up key Canadian Investment Regulatory Organization and Canadian Investor Protection Fund oversight activities in its “CSA Staff Notice 25-315” report.
The report covered CSA’s evaluation of CIRO initiatives like rules consolidation, operationalization of the delegated registration functions, and powers for dealers and individual registrations. It also examined Dealer Member Fee Model changes and the implementation of the new proficiency model for investment dealers, as well as CIRO’s response to a cybersecurity breach last August 2025.
The CSA reviewed the ongoing integration of the CIPF’s two protection funds and tracked the alignment of its investment policies and strategies. It determined whether a credit-risk based fund model should be used to help establish fund size.
CSA members also evaluated reforms of CIRO rules and of CIPF policies and necessary filings. They finished the 2025 Oversight Review of three CIRO functional areas. They also achieved the substantial completion of review into specific processes in two CIPF functional areas.
Prediction markets requirements
CSA and CIRO jointly reminded industry and investors of the applicable requirements ruling prediction markets and event contracts (i.e., prediction contracts and forecast contracts) given rising interest in prediction markets in Canada. They cautioned that non-compliance could spur enforcement action.
The groups defined prediction markets as platforms facilitating event contracts trading; these contracts pay out depending on the outcomes of future events. Thus, traders or trade facilitators in event contracts that are securities or derivatives must comply with applicable requirements, like those related to registration or recognition, under securities or derivatives legislation.
Multilateral Instrument 91-102 Prohibition of Binary Options bans persons from advertising, offering, selling, or otherwise trading a binary option with a term to maturity of less than 30 days, with or to an individual, in certain CSA jurisdictions. The “Application of CIRO Requirements to Event Contracts” bulletin released on March 26 indicated that two CIRO members are authorized to facilitate Canadian client access to event contracts, including those executed on foreign regulated prediction markets.
The facilitation of CIRO dealer members’ event contracts trading is governed by specific terms and conditions set by CIRO following consultations with CSA members. These terms and conditions are linked to the types of products that may be offered to Canadian clients and the trading of these products.
The terms and conditions may change for dealer members or others in the future based on regular CSA and CIRO evaluation. CIRO members may grant Canadian clients access to event contracts traded on non-Canadian markets; nonetheless, CSA has yet to recognize prediction markets as an exchange or register them as a dealer or exempted them from requirements.
CSA and CIRO indicated they were continuously evaluating the terms and conditions; they were also tracking developments in prediction markets and event contracts. The groups said they would publish guidance on the application of securities or derivatives legislation.
CSA and CIRO will also determine whether further regulatory action like changing terms and conditions was necessary given current concerns around prediction markets. The groups instructed industry participants seeking to trade or facilitate trading in event contracts with Canadian investors must contact local CSA members and CIRO first.