News Release

SIMA supports CSA’s data portability and e-KYC innovation initiatives

May 16, 2025 (Toronto) – The Securities and Investment Management Association (SIMA today expressed support for the Canadian Securities Administrators’ (CSA) consultation regarding enhancing investor experience through data portability and electronic Know Your Client (e-KYC) solutions.

In its submission to the CSA, SIMA welcomes the Financial Innovation Hub’s launch of the Collaboratory and Data Portability Test, which aims to reduce barriers to investor engagement and to support innovation in the Canadian capital markets. SIMA recognizes the importance of regulatory innovation to foster a resilient and efficient investment sector that benefits all Canadians.

“We commend the CSA for taking a forward-looking approach to financial innovation,” said Andy Mitchell, President and CEO of SIMA. “Data portability and e-KYC solutions have the potential to enhance the investor experience by making it easier and safer for Canadians to manage their investments. We are committed to working closely with regulators to ensure these innovations are implemented thoughtfully with strong privacy protections and clear regulatory guidance.”

In its response to the CSA’s Multilateral Discussion Paper 11-406, SIMA outlined key guiding principles and preliminary recommendations to support careful consideration of data portability and e-KYC solutions. These include:

• Protecting investor privacy: Emphasizing robust client authorization and consent mechanisms to ensure investors fully understand and control how their data is shared and used.
• Regulatory harmonization: Advocating for alignment with federal and provincial data portability initiatives to reduce regulatory burden and maintain consistency across jurisdictions.
• Clear liability framework: Calling for clarity on the responsibilities and liabilities of data holders and recipients to mitigate risks for securities registrants.
• Phased implementation: Supporting a careful, phased approach to testing and adoption to address privacy, operational, and regulatory challenges effectively.
• Data portability is expected to improve efficiency in transferring client information, potentially streamlining the account-opening process and enhancing investor convenience. However, SIMA cautions that data quality and unauthorized sharing risks require careful management.

About SIMA

The Securities and Investment Management Association empowers Canada’s investment industry.  The association, formerly The Investment Funds Institute of Canada (IFIC), is the leading voice for the securities and investment management industry. The industry oversees approximately $4 trillion in assets for over 20 million investors and participates in the Canadian capital markets. Our members—including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers—are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.

For more information

Christine Harminc
Director, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313