Q: IIROC AdvisorReport also has a search function that accesses disciplinary cases. What is the difference between Consolidated Enforcement Actions and IIROC AdvisorReport?
IIROC AdvisorReport is the most useful tool for finding information about individual advisors who are currently registered with IIROC. It provides details on an advisor’s disciplinary history, if there is one, and also supplies background information on the advisor’s education, qualifications and employment history.
If you want information on Consolidated Enforcement Actions involving firms, or former IIROC-registered advisors, then Consolidated Enforcement Actions is where you should search. Consolidated Enforcement Actions has case records on firms that IIROC currently regulates plus those which used to be regulated by IIROC.
Q: Does Consolidated Enforcement Actions have information about completed cases only, or can I also find information about ongoing cases?
Both. By searching in Consolidated Enforcement Actions you will find information about both ongoing and completed cases.
Q: How far back does this Disciplinary Case database go?
You can find disciplinary information online dating back to September 1997.
Any IIROC disciplinary action prior to September 1997 can be requested from IIROC directly at 1.877.442.4322.
Q: Which types of documents about disciplinary proceedings can I find?
When searching a disciplinary case, you will see that each case normally has three types of documents filed with it.
Enforcement Notices. Enforcement Notices keep regulated firms, their employees and the public informed of each step of the disciplinary and enforcement process. Enforcement Notices include information about upcoming hearings, including the date, time, location and alleged violations. Enforcement Notices also announce subsequent motions, adjournments, appeals and decisions made by IIROC Hearing Panels, including penalties. Enforcement Notices are all publicly posted on the IIROC website.
News Releases. While Enforcement Notices are mostly used for communicating with IIROC-regulated firms and their employees, news releases have a broader distribution to the general public. IIROC does not issue a news release for every stage of the disciplinary process. Instead, news releases are issued to introduce new cases, announce disciplinary decisions, or provide new information about ongoing cases.
Miscellaneous Documents. These include associated legal documents and filings such as:
- Notice of Hearing. Outlines the alleged facts and misconduct of the firm or individual and says where and when a contested hearing will take place.
- Reasons for Decision. Issued by the panel at the conclusion of a hearing process, to explain the panel’s decision and rationale regarding whether the firm or individual has broken a rule(s) as alleged in the Notice of Hearing.
- Penalty (when not included in Reasons for Decision). Document issued by the panel to specifically explain the reasoning behind a penalty decision.
- Settlement Agreement. A negotiated agreement between IIROC staff and IIROC-regulated firms or individuals in which the firm or individual acknowledges that a rule has been broken and agrees to a specific penalty. It becomes a public document if approved by the panel at a Settlement Hearing.
Q: What are the different kinds of hearings?
Settlement Hearing
In many cases, IIROC staff and the firm or individual involved in the dispute are able to negotiate a settlement in which the firm or individual admits to certain misconduct and agrees to a corresponding penalty. However, that agreement is not binding until it is accepted by a Hearing Panel. Therefore, IIROC staff and the firm or individual must attend a formal hearing, present the agreement to the Hearing Panel and explain why they believe that the panel should accept it. At the Settlement Hearing the panel will consider the settlement and will provide reasons as to why it accepts or rejects the settlement.
Contested Hearing
A contested hearing takes place when the firm and/or individual and IIROC have not been able to conclude a settlement agreement.
Contested Hearings resemble trials that take place in regular courtrooms. IIROC Enforcement Counsel must present evidence to prove the allegations contained in the Notice of Hearing. The firm or individual has the opportunity to challenge the allegations being made against them by cross-examining any IIROC witnesses and by presenting their own evidence.
After the parties have presented their evidence, each side makes its closing arguments. The Hearing Panel then usually adjourns to decide the case and later issues written reasons explaining its decision.
If the Hearing Panel decides that Enforcement Counsel has proven some or all of the allegations in the Notice of Hearing, the Hearing Panel will then hear evidence and argument from both sides as to the appropriate penalty.
Expedited Hearing
Expedited Hearings are rare and commence with a Notice of Application rather than a Notice of Hearing. The firm or individuals are usually not informed about the hearing and normally does not attend. Any order that the Hearing Panel may make is usually temporary and is meant to address acute or serious risks that need to be addressed immediately.
The respondent has a right to request an immediate review of the decision. The decision of the Hearing Panel will be made public.
Q: Can the public attend hearings?
Yes, most hearings are open to the public. However, there are exceptions:
Settlement Hearings are closed, although they immediately become open if the panel accepts the settlement.
There is also the rare case where the Hearing Panel decides to close the hearing to the public. It does not happen often, but the Hearing Panel has the authority to do so.
Q: I’ve searched the Consolidated Enforcement Actions but the information I am seeking isn’t there. Is there anywhere else to search?
There are other search tools offered by securities regulators in Canada and the US.
Links to all these resources are available in the “Search outside IIROC” feature which can be found in Know Your Advisor in the Investors section of the IIROC website.