CSC COURSE

An investor sells $25,000 of Government of Canada bonds.

The Office of the Superintendent of Financial Institutions.
The Office of the Superintendent of Financial Institutions (OSFI) was established in 1987 by legislation that amalgamated the Department of Insurance and the Office of the Inspector General of Banks. The same legislation established a committee composed of the Superintendent of Financial Institutions, the Governor of the Bank of Canada, the Deputy Minister of Finance and the Chairman of the Canada Deposit Insurance Corporation.

Demutualization.
Demutualization is the process by which insurance companies, owned by policyholders, reorganize into companies owned by shareholders. Policyholders in effect become shareholders in an insurance corporation. The significance of demutualization is that it provides insurance companies with access to capital markets, allowing them to acquire other companies with equity, rather than cash, making them better able to compete with other financial institutions such as banks.

Financial products, financial markets and financial intermediaries.
The three key elements in the securities industry are financial products, financial markets and financial intermediaries.

ATS increase the order flow through the exchanges.
When dealers set up their own ATS and deal from their own inventory of securities, the number of orders flowing through the exchanges decreases, not increases as in (c).