They are suing the government because CSIC have messed up the industry and were caught out.
This has very little to do with defending consumer rights, it is more likely about keeping the money that they receive from members.
CSIC members will register with the new regulator.
Transitional measures would be put in place to ensure continuity of service for both existing members in good standing of CSIC and their clients during the transition to the ICCRC. This process could take a few months to complete and it is anticipated that the ICCRC could become the regulatory body this summer.
http://www.cic.gc.ca/english/department/media/releases/2011/2011-03-18.asp