Canadian Securities Course (CSC) Level 1 Practice Exam

Who does the Canadian Securities Administration (CSA) coordinate with to regulate the Canadian capital markets?

1. Bank of Canada

2. Investment Industry Regulatory Organization of Canada (IIROC)

3. Mutual Fund Dealers Association (MFDA)

4. Provincial securities regulators

The correct answer is: Provincial securities regulators

The correct answer is D. Provincial securities regulators. The Canadian Securities Administration (CSA) is an umbrella organization of Canada's provincial and territorial securities regulators whose objective is to coordinate and harmonize regulation of the capital markets across the country. The CSA facilitates cooperation between the various provincial regulators to ensure a consistent regulatory framework for Canadian capital markets. This collaboration helps in promoting investor protection, fair and efficient capital markets, and confidence in the integrity of the financial system. Options A, B, and C are not the primary regulatory bodies that the CSA coordinates with to regulate the Canadian capital markets. While the Bank of Canada is Canada's central bank, responsible for monetary policy and the stability of the financial system, it does not have a primary role in regulating securities markets. The Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA) are self-regulatory organizations overseeing investment dealers and mutual fund dealers, respectively, but they do not have the overarching coordination and regulatory authority that the provincial securities regulators possess in conjunction with the CSA.