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.

Regulators IIROC
Entity Types B/D; IA
Reference Rp, PR, 4/19/2017
Functions Complaints; Compliance; C-Suite; Exams; Financial; Legal; Registration; Suitability
Countries Canada
Products Fund Mgt; Securities
Regions Am
Rule Type Enforcement
Rule Date 4/19/2017
Effective Date 4/19/2017
Rule Id 31928
Linked to N/A
Report Issue 5/1/2017
Report Section International

Last substantive update on 04/19/2017