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October 2024 Advocacy Newsletter
Summary:
The Canadian Advocacy Council meets in-person twice a year—these meetings are a fantastic opportunity to exchange ideas amongst one another and outside guests about emerging regulatory issues. Our October meeting in Toronto was no exception.
We heard from Shruti Dutta, CFA, and Andrew Pennington, CFA, CIPM, on challenges implementing Know Your Product standards under the Client Focused Reforms. Without clear, informed direction from regulators, firms are left to interpret open-ended standards on their own, such that they could reach diverging conclusions about what these standards require.
Chris Keeley, CFA, turned our attention to research highlighting how active managers overwhelmingly underperform passive benchmarks—especially over the long run—and what this might mean for fiduciaries tasked with choosing among investment managers pursuing active and passive strategies.
David Stanton, CFA, briefed us on central clearing and financial infrastructures in Canada, leading into a discussion on new rule proposals that would revisit requirements for central clearing of a variety of derivative products.
We also got to hear from Stephen Deane, CFA, on current projects from CFA Institute on the rise of private credit and its implications for markets and regulators, as well as ethics in private markets.
Most of all, the meeting was a chance to catch up with one another and get ready for what’s shaping up to be a busy regulatory season. Given the strengths of our membership and the breadth of our conversations this past month, I’m confident CAC will continue to make unique contributions to capital markets regulation in Canada.