Mutual fund activities in Canada are regulated by administrative bodies, specifically provincial and territorial securities regulators, acting collectively through the Canadian Securities Administrators (CSA). The Investment Funds in Canada course explains that securities regulation in Canada is not federal, but rather administered at the provincial and territorial level through securities commissions such as the Ontario Securities Commission (OSC) and the Autorité des marchés financiers (AMF) in Québec.
These administrative bodies create, administer, and enforce securities legislation, including rules governing mutual fund distribution, disclosure, registration, and conduct. National Instruments such as NI 81-102 (Mutual Funds) and NI 31-103 (Registration Requirements) are developed through the CSA and enforced by these regulators.
The federal government does not directly regulate mutual funds. Transfer agents perform record-keeping functions only, and stock exchanges regulate listed securities, not mutual fund operations. The CIFC curriculum clearly emphasizes that securities regulation is carried out by administrative authorities, not political or commercial bodies.
Therefore, Option B is the correct and fully CIFC-verified answer.
