Governance and structure
The Regulatory Division governance and structure are designed to ensure its independence, given the status of the Exchange as a for-profit corporation. For example:
- due regard is given to the preservation of the independence of the self-regulatory function of the Division and to its obligations to investors and the general public;
- the Exchange does not take any action that would interfere with the effect of any decisions by the Special Committee – Regulatory Division relating to its regulatory functions (including disciplinary matters) or that would interfere with the ability of the Division to carry out its responsibilities under the Exchange’s Recognition Order; and
- if the Exchange becomes aware of or has in its possession confidential informartion pertaining to the self-regulatory function of the Division, it arranges to keep this information confidential.
The structural and governance standards put in place for the Division are in compliance with the provisions of the Exchange’s Recognition Order and with the Rules of the Exchange that regard the Division and the Special Committee – Regulatory Division. These structural standards include the following:
- the Division operates as a separate and independent business unit of the Exchange. Its financial budgets as well as its financial results are separated from those of the Exchange. Its operations are self-funded and are carried on a not-for-profit basis;
- the Division is under the oversight of the Special Committee – Regulatory Division. This committee is nominated and appointed by the Board of Directors of the Exchange; and
- the Special Committee – Regulatory Division must be composed of a majority of independent members.