The Canadian Investment Regulatory Organization recently announced that its Trade Resumption Guidelines (TRG) have been made available to the public. The TRG is a set of rules and regulations designed to ensure the financial stability of the Canadian investment sector and protect investors.
The TRG was developed by the Canadian Investment Regulatory Organization in collaboration with the Investment Industry Regulatory Organization of Canada and the Toronto Stock Exchange as well as the provincial and territorial securities commissions. Its purpose is to bring clarity and consistency across the Canadian investment sector by providing all participants with the same set of rules and regulations.
Under the TRG, investors will be able to resume trading in the Canadian stock markets at the earliest possible time. The TRG outlines a number of measures that industry participants must adhere to ensure that investors are protected in the event of a market disruption. Some of these measures include the requirement to report all trading activities as soon as possible; the verification of personal information before executing a trade; the establishment of a customer protection plan to protect personal information; and the adherence to a sound risk management plan.
The TRG also requires business organizations to comply with the principles of transparency, fairness and integrity. This includes the implementation of internal policies, procedures, and controls related to reporting, disclosure, supervision, and risk management. In addition, firms are also expected to comply with applicable laws, rules, and regulations.
The TRG is a welcome step to ensure the long-term financial stability of the Canadian investment sector. Investors will benefit from the clarity provided in the TRG, as well as the assurances that their investments will be protected. The TRG is a key element of the Canadian Investment Regulatory Organization’s mission to protect investors and foster confidence.