Decision made following extensive consultations
TORONTO, Feb. 7, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today published an update notice regarding the Restricted Dealer Member concept proposal it issued for
comment in July 2012.
IIROC initially developed the concept proposal in response to policy
concerns relating to the scope of activities being undertaken by
certain exempt market dealers (EMDs). The proposal was issued to
solicit feedback regarding the possibility of transitioning firms
carrying out brokerage activities through an EMD registration to an
investment dealer registration, and subject to IIROC supervision.
The IIROC notice explains the reasons underlying its decision not to
proceed with the proposal at this time based on feedback it solicited.
In reaching our conclusion, IIROC carefully considered the views
expressed in the many comment letters received from various industry
and investor stakeholders in Canada and the U.S., as well feedback from
additional consultations conducted by IIROC.
The Canadian Securities Administrators (CSA) today also issued a Staff
Notice confirming its view that IIROC should oversee firms that conduct
brokerage activities (See CSA Staff Notice 31-333 Follow-up to Broker-Dealer Registration in the Exempt Market Dealer
Category). It indicated its intention to publish for comment in 2013 proposed
rule amendments to NI 31 - 103 Registration Requirements, Exemptions and Ongoing Registrant Obligations
to prohibit EMDs from conducting brokerage activities.
IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces
in Canada. Created in 2008 through the consolidation of the Investment
Dealers Association of Canada and Market Regulation Services Inc.,
IIROC sets high quality regulatory and investment industry standards,
protects investors and strengthens market integrity while maintaining
efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and
enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through
setting and enforcing market integrity rules regarding trading activity
on Canadian equity marketplaces.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Public Affairs
Public Affairs Specialist