The CSA is not a federal regulator but an umbrella organization that brings together the securities commissions of all 10 provinces and 3 territories. Its role is to coordinate, harmonize, and improve securities regulation across the country in collaboration with bodies such as the British Columbia Securities Commission (BCSC), the Ontario Securities Commission (OSC), and Québec’s Autorité des marchés financiers (AMF).

While the CSA provides guidance and alignment, direct regulatory authority rests with the provincial commissions themselves, such as the BCSC or OSC.
CSA’s primary functions:

  • Development of regulations (Example: National Instrument 81-107 – Independent Review Committee for Investment Funds
    The CSA developed this regulation to ensure mutual funds and other investment funds have independent oversight for conflict-of-interest matters. It sets uniform standards across Canada, promoting consistent investor protection.)
  • Overseeing self-regulatory organizations (like CIRO) (Example: Creation of the Canadian Investment Regulatory Organization (CIRO) in 2023.
    The CSA played a direct role in merging the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA) into the new CIRO. The CSA continues to oversee CIRO’s compliance and effectiveness.)
  • Improving investor protection (Example: “Creating National Instruments” like NI 31-103 includes investor protection provisions such as Client-Focused Reforms, conflict of interest rules, and suitability obligations.)
  • Enhancing market efficiency (Example: Adoption of the Passport System.
    The CSA developed this system so that market participants only need to deal with one provincial regulator (in their principal jurisdiction) to be able to offer products in most provinces and territories)
  • Improving coordination and regulation of Canada’s capital markets (Establishment of the CSA Regulatory Sandbox. The sandbox supports fintech companies by allowing them to test innovative products and services in a controlled environment with regulatory relief, where appropriate.)