IIROC’s 2021 – 2022 Enforcement Report: Effective regulation a result of pan-Canadian enforcement powers and ability to collect fines through courts

Type: Media Release> General

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Stephanie Teodoridis
Senior Public Affairs and Corporate Communications Specialist
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July 7, 2022, (Toronto, Ontario) – The Investment Industry Regulatory Organization of Canada (IIROC) released its annual Enforcement Report today, which highlights enforcement activities and IIROC’s continued efforts to protect investors and the integrity of Canada’s capital markets.

Highlights from the fiscal year 2022 Enforcement Report include:

  • The use of Early Resolution Offers to promote the timely resolution of proceedings and preserve regulatory resources. Four cases reached early resolutions in 2022.

  • IIROC achieved the ability to enforce fine collection through the courts in every province and territory in Canada in November 2021.

  • The collection rate for monetary sanctions imposed on individuals in past fiscal years continued to increase.

  • Over $4 million in fines, disgorgement and costs imposed by hearing panels on IIROC-regulated persons (individuals and firms). The amount individuals were ordered to disgorge increased from prior years, as Enforcement continued to focus on ensuring that those who engage in misconduct do not financially benefit.

  • IIROC continued to advance enforcement activities throughout the pandemic by conducting certain investigation interviews and hearings virtually and will continue to integrate technology into its enforcement process.

“This past year, we continued to focus on pursuing impactful cases to prevent and deter misconduct and improve industry standards,” said Charles Corlett, IIROC's Vice-President, Enforcement. “We pursued enforcement proceedings that addressed a wide range of conduct, always focused on advancing those cases that will contribute most significantly to protecting investors and strengthening market integrity.”

IIROC continues to work closely with the Canadian Securities Administrators (CSA) and Mutual Fund Dealers Association of Canada (MFDA) to create a new and enhanced self-regulatory organization. “We also look forward to working with the CSA and MFDA to create a new and enhanced self‑regulatory organization to better protect investors and support healthy Canadian capital markets, including an effective and robust enforcement department,” said Corlett.

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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 174 Canadian investment dealer firms of varying sizes and business models, and their more than 31,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces. For more information, visit www.iiroc.ca.