The title of this post was a recent client question. It is a timely question, and what follows will expand on the diagram.
The Canadian Securities Administrators(CSA) create policies which govern the investment industry in Canada. These policies are called National Instruments.(NI)
All provincial securities commissions belong to the CSA. In Alberta the Alberta Securities Commision(ASC) enforce the NI and oversees investment activity in Alberta.
The ASC delegates some responsibility to the Mutual Fund Dealers’ Association.(MFDA) The MFDA’s mandate is investor protection.
My dealer, Portfolio Stategies Corporation (PSC) ensures their advisors are compliant through the documentation that accompanies investment activity. This documentation ensures advisors make suitable recommendations that will increase clients’ opportunity for financial success. PSC has 2 compliance officers who help advisors follow investment policy.
These 3 regulatory organizations, as well as the Alberta Insurance Council, and the Financial Planners Standards Council oversee my professional business.
This is a detailed answer to a relevant question.