The Canadian Securities Administrators (CSA) have announced an extension of the comment period deadline for their consultation regarding the exchange-traded fund (ETF) regulatory framework from Oct. 17 to Oct. 31.
On June 19, the CSA published a consultation paper, which suggested specific enhancements to the framework.
The consultation paper considered a study of the Canadian ETF market by the Ontario Securities Commission’s thought leadership division, as well as the “Good Practices Relating to the Implementation of the IOSCO Principles for Exchange Traded Funds” published by the International Organization of Securities Commissions.
According to the CSA’s news release, the extension seeks to provide all stakeholders with enough time to read the consultation paper, available on the CSA members’ websites, and submit meaningful feedback.
In its news release, the CSA urged those interested to send their input regarding the consultation paper via the addresses listed in the notice and their local securities regulator.
About consultation
According to the CSA’s previous news release, the consultation seeks stakeholder feedback on investor access to US ETFs through brokerage accounts and exposure to US and other foreign ETFs via publicly offered investment fund holdings.
“This consultation will provide the CSA with important insights into the unique regulatory considerations for these products,” said Stan Magidson, CSA chair and Alberta Securities Commission chair and CEO, in the news release.
In 2023, the CSA commenced its review of the ETF regulations to see whether they were still fit for purpose. In its review, the CSA looked into ETFs’ unique characteristics like secondary market trading, authorized dealers’ ETF unit creation and redemption, and ETFs’ underlying arbitrage mechanism.
The CSA said it expected an uptick in interest and investment in ETFs, given that ETFs have seen healthy growth in Canada, with assets under management amounting to $518 billion by the end of last year. The CSA noted that retail investors make significant use of ETFs.
“ETFs are an increasingly important investment vehicle for Canadians, providing investors with access to a wide range of investment exposures and strategies and offering intraday liquidity,” Magidson said in the prior news release.
As the council of the securities regulators of Canadian provinces and territories, the CSA seeks to coordinate and harmonize regulation for the country’s capital markets.