COVID-19: Investment fund industry updates (March 27, 2020)
Bank of Canada Launches Commercial Paper Purchase Program
On March 27th, the Bank of Canada announced that, “in order to support the continuous functioning of financial markets” it is launching a Commercial Paper Purchase Program (CPPP). The Bank of Canada stated that the CPPP will help support the flow of credit to the economy by alleviating strains in Canada’s commercial paper markets.
Specifically, for the next 12 months, the Bank will conduct primary and secondary market purchases of CP, including asset-backed CP, issued by Canadian firms, municipalities and provincial agencies with an outstanding CP program.
In conjunction with this announcement, the Bank announced secondary market purchases of Government of Canada securities and cut its target for the overnight rate by 50 basis points to ¼ percent.
Cybercriminals Exploiting COVID-19
The Mutual Fund Dealers Association of Canada (MFDA) has issued a bulletin stating that as firms increasingly rely on technology to facilitate work from home arrangements and remotely service clients, there is an increased cybersecurity risk. The bulletin outlines current threats and considerations for members.
The OPC Issues Guidance on Privacy and COVID-19
The Office of the Privacy Commissioner of Canada (OPC) has issued guidance to help organizations subject to federal privacy laws understand their obligations during the COVID-19 outbreak.