CSD-A.4 CSD-A.4 Division of Responsibilities
CSD-A.4.1
SROs should be subject to the oversight of the regulator, and should observe standards of fairness and confidentiality when exercising powers and delegated responsibilities.
CSD-A.4.2
SROs shall:
(a) Have the capacity to carry out the purposes of governing laws, regulations and SRO rules, and to enforce compliance by its members and associated persons with those laws, regulations, and rules;(b) Treat all members of the SRO and applicants for membership in a fair and consistent manner;(c) Develop rules that are designed to set standards of behaviour for its members and to promote investor protection;(d) Submit to the regulator its rules for review and/or approval as the regulator deems appropriate, and ensure that the rules of the SRO are consistent with the public policy directives established by the regulator;(e) Cooperate with the regulator and other SROs to investigate and enforce applicable laws and regulations;(f) Enforce its own rules and impose appropriate sanctions for non-compliance;(g) Assure a fair representation of members in selection of its directors and administration of its affairs;(h) Avoid rules that may create uncompetitive situations; and(i) Avoid using the oversight role to allow any market participant to gain unfair advantage in the market.CSD-A.4.3
Regardless of the extent to which self-regulation is used, the CBB retains the authority to enquire into matters affecting investors or the market.
CSD-A.4.4
Where the powers of an SRO are inadequate for enquiring into or addressing particular misconduct, or where a conflict of interest necessitates it, the CBB shall take over the responsibility for an enquiry from an SRO. It is important therefore, to ensure that the information provided by the SRO to the regulator allows these matters to be identified at an early stage.
CSD-A.4.5
SRO's should follow similar professional standards of behaviour on matters such as confidentiality and procedural fairness as would be expected of the CBB.
