TORONTO, March 27, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today released its first comprehensive
Enforcement Report for 2012, which highlights its ongoing efforts to
deliver fair, effective and timely enforcement of IIROC's member
conduct and market integrity rules.
This inaugural report provides a high level overview of IIROC's role in
domestic securities regulation and enforcement. It outlines IIROC's
strategic enforcement priorities and initiatives and provides summaries
of its most noteworthy cases illustrating IIROC's focus on cases
involving seniors and suitability.
"IIROC's Enforcement Department plays a key role in our mandate to
protect investors and foster fair and efficient capital markets across
Canada. We will continue to work diligently to strengthen and
streamline our enforcement processes to hold wrongdoers accountable,
disrupt potential regulatory misconduct and send strong deterrent
messages to IIROC registrants," said Paul Riccardi, Senior Vice
President of Enforcement, Member Policy and Registration.
Each year, IIROC receives approximately 1,500 investor complaints. In
2012, complaints of unsuitable investment recommendations were the most
common complaint type. In recognition of this fact, nearly one third
of IIROC's prosecutions last year involved these types of cases.
Other 2012 highlights of IIROC's report include:
IIROC initiated 256 investigations and 129 prosecutions
Nearly one-third of disciplinary proceedings in 2012 involved investors
that were 60 years of age or older
IIROC initiated investigations and prosecutions in every region of the
IIROC successfully prosecuted 56 individuals and 16 firms
Fines of nearly $1.4 million against individuals and almost $10 million
were imposed against IIROC-regulated firms
4 firms and 34 individuals were suspended
9 individuals were permanently barred from working at an IIROC firm in a
The 2012 Enforcement Report can be found online here http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=B3B8C7081CFC4234BA68F31C61D64681&Language=en.
In keeping with IIROC's commitment to transparency and accountability,
updated Enforcement Reports will be published annually. Print copies
are also available upon request.
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 by creating and
enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through the
creation and enforcement of market integrity rules regarding trading
activity on Canadian marketplaces.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Public Affairs
Senior Media and Public Affairs Specialist