We learned about CSA’s primary functions, but why does it actually aim to achieve? Here are some reasons to better understand the CSA’s objectives:

Harmonize Securities Regulation –CSA works with each provincial securities commission to streamline regulations (there are many inconsistencies between provinces in the regulatory rules). For example, ShadyEther Inc. wanting to offer their shares to the public may not rely on all the ways to do so in ON as it could in BC. Maybe it’s a good thing for a firm with this kind of name, but legitimate businesses may not be able to raise capital in the same way in all provinces. Here is where CSA comes in. It helps to:

  • Develop national instruments and policies that apply consistently across jurisdictions.
  • Minimize regulatory duplication and inconsistency between provinces and territories.

Enhance Investor Protection – ShadyEther Inc. manages to sell you it’s shares, but charges you 10% commission for doing that. If you don’t know about it, it never happened. Right? Wrong. CSA helps ensure there are less chances bad actors have to scam you by working to:

  • Ensure investors have access to accurate, timely, and transparent information.
  • Promote initiatives that improve investor education and confidence.

Improve Regulatory Efficiency & Promote Enforcement and Compliance – regulators like Ontario Securities Commission and Canadian Investment Regulatory Organization require registration by individuals and firms to conduct securities business in Canada. CSA attempts to create consistency and transparency where the same systems are used to maintain information by:

  • Streamlining the registration, disclosure, and enforcement processes.
  • And as noted, developing and maintaining shared technology platforms like SEDAR+, SEDI, and NRD.
  • Encouraging cooperation among jurisdictions in investigating and prosecuting securities violations.
  • Sharing information and best practices between member regulators.

Facilitate Capital Formation – CSA works with the industry to find new ways in allowing firms to raise capital. We mean allowing good actors more opportunities to fund their business, while protecting your 95 year-old grandma from being offered crypto at half-price.

  • Support businesses in raising capital while ensuring regulatory standards are met.
  • Maintain balance between investor protection and ease of market access for issuers.

Represent Canadian Markets Internationally

  • Act as a collective Canadian voice in global regulatory discussions and forums (e.g., IOSCO).