IIROC Use of Enforcement Tools
On Apr. 19, IIROC issued report on effective enforcement actions.
- Report increased investigations, enforcement actions, to protect investors, market.
- More effective legal authority to hold wrongdoers, who harm investors accountable.
- New tools will enable stronger protection for investors, collect more fines in future.
- Sought sanctions which sent strong regulatory message, to deter future wrongdoing.
- 2016 Actions
- Completed 138 investigations vs, 124 in 2015, commenced 55 proceedings, up 25%.
- Prosecuted 40 individuals and 6 firms, suspended/terminated 2 firms/20 individuals.
- Permanently barred 6 individuals working at an IIROC-firm, in a registered capacity.
- Increase in total number of complaints received, to 1,459 in 2016, vs 1,341 in 2015.
- Unsuitable investments, remained top complaint received and prosecuted by IIROC.
- Suitability cases represented 37% of complaints and more than 40% of prosecutions.
- Collection of Fines
- Total sanctions imposed on disciplined individuals rose to $3.12mn, up from $2.95mn.
- While IIROC collected 100% of fines on firms, only got 8% from individuals, fall of 50%.
- Showed need of new government legal authority to improve collections, enforcement.
- PE Island gave IIROC authority, to collect disciplinary fines directly via Supreme Court.
- Ontario stated intent to give IIROC ability to pursue collection of fines through courts.
- IIROC already has the ability to collect fines through the courts in Alberta and Quebec.
||Rp, PR, 4/19/2017
||Complaints; Compliance; C-Suite; Exams; Financial; Legal; Registration; Suitability
||Fund Mgt; Securities
Last substantive update on 04/19/2017