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Housekeeping amendments to the IIROC Consolidated Enforcement, Examination and Approval Rules 

17-0224
Type: Rules Notice> Approval/Implementation
Rule connection:
UMIR
Legacy DMR Rules
Distribute internally to:
Legal and Compliance
Senior Management

Contact:

Ellen Lee
Policy Counsel, Member Regulation Policy
Telephone:
416-865-3021
Email:
Email

Executive Summary

On September 13, 2017, by way of resolution, IIROC’s Board of Directors (the Board) approved housekeeping amendments to the following sections of the IIROC Consolidated Enforcement, Examination and Approval Rules (the Consolidated Rules):

  • 8107(1)(iii) Continuing Jurisdiction
  • 8411(4) Language of Hearings and Interpreters
  • 8415(4) Response to a Notice of Hearing
  • 8427(8)(ii) and (iv) Review of Protective Orders
  • 9204(1)(i) Individual Approval Applications
  • 9209(2) Review Hearings
  • 9305(2) Review by a Securities Regulatory Authority
  • 9408(3) Exchange of Written Submissions

In addition, the Board approved housekeeping amendments to correct a typographical error (in section 2.1 Specific Unacceptable Activities) and repeal certain provisions of Policy 10.8 of the Universal Market Integrity Rules (UMIR) that were inadvertently not repealed when the Consolidated Rules came into force in September 2016. The following sections of Policy 10.8 were repealed:

  • 4.3(2) Date of Hearing
  • 9.5 Order for Particulars or Amendment
  • 9.7 Public Access to Hearing
  • 10.1 Selection of Hearing Panel

 (Collectively, the Amendments.)

The Amendments are effective immediately.

Table of contents

  1. Discussion of Amendments

  1. Analysis

The original proposal to consolidate certain enforcement, procedural, examination and approval rules was published for comment in March 2012 (the Original Notice).1
 Following extensive comments, IIROC staff prepared responses to those comments and made certain changes to the rules which were re-published for comment in November 2013 (the Republication Notice).2
 
In response to the Republication Notice, IIROC staff received one public comment letter from the Investment Industry Association of Canada (IIAC). In addition, we invited all commenters (from both the Original Notice and the Republication Notice) to participate in a “roundtable” meeting in March 2014. 

The Canadian Securities Administrators (CSA) and the Board approved the Consolidated Rules and they were implemented on September 1, 2016 (the Implementation Date),3
 except Rule 8300 which became effective in June 2016.

As it is now the one-year anniversary of the implementation of the Consolidated Rules, we are proposing to implement amendments to 8 sections of the Consolidated Rules. Set out below is a brief description of each of the amendments:

Consolidated Rule Reference Nature of Amendment
8107(1)(iii) Continuing Jurisdiction Grammatical correction
8411(4) Language of Hearings and Interpreters To ensure the language used is consistent with current practice
8415(4) Response to a Notice of Hearing To ensure the language used is consistent with current practice
8427(8)(ii) and (iv) Review of Protective Orders Typographical correction
9204(1)(i) Individual Approval Applications Corrects inaccurate cross-reference
9209(2) Review Hearings Typographical correction
9305(2) Review by a Securities Regulatory Authority Typographical correction
9408(3) Exchange of Written Submissions Typographical correction

In addition, set out below is a brief description of the amendment in UMIR:

UMIR Reference Nature of Amendment
UMIR 2.1 Specific Unacceptable Activities Typographical correction

The purpose of the Amendments is to clarify the intentions in drafting the Consolidated Rules and UMIR, ensure that the language used is consistent with current practice, and make minor necessary changes of an editorial nature. 

Classification of the Amendments

We have classified the Amendments as “housekeeping” because they:

  • do not represent a material change to IIROC rules 
  • have no material impact on investors, issuers, Dealer Members or the capital markets in Canada as they: 
    • make amendments to correct typographical and grammatical mistakes and inaccurate cross-referencing
    • make necessary changes of an editorial nature (such as standardization of terminology) 
    • are reasonably necessary to ensure the Consolidated Rules and UMIR conform to applicable securities legislation, statutory or legal requirements.

  1. Impacts of the Amendments

We do not expect the Amendments to impose any burden or constraint on competition or innovation that is not necessary or appropriate to support IIROC’s regulatory objectives. Likewise, we do not expect they will impose costs or restrictions on the activities of market participants that are disproportionate to the regulatory objectives.

Technological implications 

The Amendments will not have an impact on Dealer Members’ systems, or on the systems of their service providers or other stakeholders. 

  1. Policy Development Process

  1. Regulatory purpose

The Amendments maintain rules that are necessary or appropriate to govern and regulate all aspects of IIROC’s functions and responsibilities as a self-regulatory entity.

In deciding on the Amendments, IIROC identified a need to ensure the Consolidated Rules and UMIR are up to date by correcting typographical, grammatical and cross-referencing errors as well as ensuring that the language used is consistent with what is currently in practice.

The Amendments are housekeeping in nature and not detrimental to the best interests of the capital markets. As a result, the Board has classified the Amendments as a “Housekeeping Rule” that is not contrary to the public interest.

  1. Appendices

Appendix A - Blackline comparison of the amendments to the current Consolidated Rules

Appendix B - Clean copy of the amendments to the current Consolidated Rules

Appendix C - Blackline comparison of the amendments to the current UMIR

Appendix D - Clean copy of the amendments to the current UMIR

  • 1See Notice 12-0104 – Consolidation of IIROC Enforcement, Procedural, Examination and Approval Rules.
  • 2See Notice 13-0275 – Republication of Proposed Consolidation of IIROC Enforcement, Procedural, Examination and Approval Rules and Attachment E to Notice 13-0275.
  • 3See Notice 16-0122 – Implementation of the consolidated IIROC Enforcement, Examination and Approval Rules.

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