Canadian regulators proposed new regulations for funds on Friday in response to conflict-of-interest scandals discovered in the U.S.
The Canadian Securities Administrators
proposed the rules and will take comments on the proposed regulations until mid-April. Going forward, Canadian fund firms must create committees with the express purpose of monitoring potential conflicts of interests between the fund company and its advisor, reported Reuters.
Hints that the scandal may grow in Canada came last week when news reports suggested that Canadian Imperial Bank of Commerce is one of two banks being looked at by U.S. regulators over possibly assisting hedge funds that improperly traded in mutual fund shares. CIBC has said the reports are "speculation" and that it would cooperate with any investigation.
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