Like mutual funds and other investments, ETFs in Canada are regulated by the securities commissions within each province or territory.
Securities commissions regulate the sale and distribution of ETFs in line with the investor protections set out in the various National Instruments, including National Instrument 81-102, and those within the broader provincial Securities Acts. These protections include requirements for disclosing investment information and pricing, ethical standards for investment professionals, and other regulations that help ensure fair and transparent access to Canadian financial markets.
In addition to governmental oversight, dealers who sell ETFs are regulated by the Canadian Investment Regulatory Organization. As a self-regulatory organization, CIRO is subject to oversight and regular operational reviews by the securities commissions in each province or territory. CIRO regulates its member dealers by setting education standards, investigating complaints, auditing for compliance and taking enforcement action when necessary.