Adequacy of supervision a key theme in IIROC’s 2020 – 21 Enforcement Report

Type: Media Release> General

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Sean Hamilton
Director, Public Affairs and Member Education Services
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July 6, 2021 (Toronto, Ontario) – The Investment Industry Regulatory Organization of Canada (IIROC) released its annual Enforcement Report today, which highlights several significant cases relating to the adequacy of supervision, internal controls, and compliance of IIROC-regulated firms. These cases demonstrate IIROC's continued commitment to protecting investors by addressing wrongdoing in a fair, effective, and timely manner.

"In addressing these cases, IIROC's focus was not merely on sending a deterrence message to the firms, but also ensuring that adequate remedial measures had been or would be implemented to prevent a reoccurrence of the failures," said Charles Corlett, IIROC's Vice-President, Enforcement. "Remedial measures that are tailored to the specific compliance and supervision failings are an important element in preventing future misconduct and harm as well as improving overall industry standards."

A key IIROC priority, seniors and vulnerable clients, comprised a quarter of the completed prosecutions against individuals this year.

Other highlights for the year include adopting Early Resolution Offers, which help achieve earlier resolutions in more cases, while also ensuring investor harm is addressed through voluntary acts of compensation and the implementation of remedial measures by firms. IIROC-regulated firms and advisors who choose to resolve a case by Early Resolution Offer will be granted a reduction of 30% on the sanctions staff would otherwise seek in a settlement agreement and a quicker resolution of the proposed proceedings.

IIROC also continued to advance enforcement activities throughout the pandemic by integrating technology and transitioning to remote investigations and hearings.

"Harnessing technology and the experience and skills of IIROC's Enforcement team allowed us to seamlessly transition to a remote environment," said Corlett. "We plan to integrate remote interviews and hearings into our investigations and proceedings even after the pandemic is over and travel restrictions are eased."

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About IIROC:

IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of 175 Canadian investment dealer firms of varying sizes and business models, and their more than 30,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces.

 

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