Industry Business Continuity Planning Test – Save the Date

23-0007
Type: Administrative Notice> General
Distribute internally to:
Legal and Compliance
Senior Management
Trading Desk
Compliance

Contact:

Alex Taylor
Vice-President, Surveillance
Telephone:
Email:

Industry Business Continuity Planning Test – Save the Date

New SRO has scheduled the next biennial industry business continuity planning (BCP) trading simulation test for Saturday October 14, 20231 . As with the previous industry BCP tests in 2019 and 2021, the date coincides with industry test dates in the United States to facilitate participation by market participants who participate in both the Canadian and U.S. markets.

This industry BCP test reflects the fact that it is critically important for stakeholders to adequately test BCP policies and procedures that are reasonably designed to ensure the provision of key services and prompt client access to their assets. The industry BCP test also complements Investment Dealer and Partially Consolidated Rule 4700, Part A, which requires every Dealer Member to establish and maintain a business continuity plan identifying the necessary procedures to be undertaken during an emergency or significant business disruption.

Like the 2021 simulation:

  • participant dealers with trading volumes at or above 1 billion shares/year based on 2022 trading data are required to participate in the trading simulation
  • participant dealers with trading volumes below 1 billion shares/year based on 2022 trading data while not required are encouraged to participate on a voluntary basis.

New SRO of Canada staff expect to contact all Participant dealers in January 2023 to confirm their required level of participation in the 2023 industry BCP test.

In 2021, an Incident Response Plan (IRP) exercise was also conducted. This exercise was developed with the Canadian Securities Administrators and structured as a hands-on simulation-based scenario and incident response plan exercise. This year, the IRP exercise will be conducted on a separate date. Further details will be provided later.

Similar to 2021, a crisis communication test (CCC) will also be undertaken. Further details will be provided at a later date.

New SRO of Canada will form an industry working group over the next several weeks to assist and advise on the preparation of the BCP test.

New SRO of Canada thanks our Dealer Members and other key test participants including the marketplaces, service providers and other market participants, in advance for their valued cooperation with respect to this important undertaking. The 2023 industry BCP test represents an opportunity for the Canadian capital markets community to demonstrate its ability to recover from a significant disruptive event.

  • 1The 2021 industry BCP test is conducted in accordance with section 12.4.1 of National Instrument 21-101 Marketplace Operation (NI 21-101) which states, “A marketplace, recognized clearing agency, information processor, and participant dealer must participate in all industry-wide business continuity tests, as determined by a regulation services provider, regulator, or in Québec, the securities regulatory authority.”

MFDA and IIROC have consolidated

As of January 1, 2023 the MFDA and IIROC have come together as New Self-Regulatory Organization of Canada (New SRO).

New SRO has assumed the regulatory responsibilities of the MFDA and IIROC.

We have set up an interim website for updates and information related to the New SRO including:

  • Executive Management
  • Governance
  • New SRO Rules
  • Member Application
  • Investor Office and the Investor Advisory Panel
  • Information concerning mutual fund dealers registered in Québec
  • Complaints
  • Careers

Enforcement proceedings, membership lists, continuing education, investor education resources and any other information not set out above continue to reside on www.mfda.ca and www.iiroc.ca.