If Case Assessment’s initial review indicates that further investigation is warranted, the matter is referred to investigation staff to begin a formal investigation.
In addition, formal investigations may be undertaken on the basis of a direct referral from another IIROC department, a request from a securities commission or other regulatory organization, or any other information received by IIROC.
- For the purpose of any examination or investigation, IIROC-approved or registered individuals and regulated firms, when asked by IIROC staff, are obligated to do the following:
- Submit a report in writing with regard to any matter involved in an investigation;
- Produce for inspection and provide copies of the books, records and accounts relevant to the matters being investigated; and
- Attend and give information respecting any such matters.
Investigations are conducted by an investigator in collaboration with Enforcement counsel. Part of the investigation usually includes interviews of the complainant and any other witnesses such as supervisors, support staff, compliance staff or anyone else who might have knowledge about the complaint or matter under investigation. Analysts assist the investigators by examining relevant information including account documentation and by producing a variety of reports and demonstrative evidence for use in the investigation and a potential hearing. The investigator and Enforcement counsel then review the findings of the investigation and make a recommendation as to whether there is evidence that a breach of IIROC’s rules has occurred.
In all cases, investigators and counsel will also assess supervisory controls and whether supervision by a dealer firm of an individual was adequate. If not, an investigation for supervisory failure could be instigated.
If matters are outside the scope of IIROC, they may be referred to the police, a securities commission or another regulatory organization. IIROC reports complaints to the appropriate law enforcement agency where there appears to be evidence of criminal activity. Individuals or firms who are the subject of an investigation may retain counsel to assist them during the investigation.