Signals key surveillance and exam priorities for coming year
TORONTO, Feb. 18, 2016 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published its annual Compliance Priorities Report outlining its key compliance and registration priorities for 2016.
Over the next year, IIROC examination teams will focus on a number of important areas including the Client Relationship Model (CRM2), debt transaction reporting and best execution.
Know-Your-Client (KYC) and suitability will continue to be key regulatory priorities for IIROC given the feedback received through investor focus groups and the results of a mystery shopping initiative. In addition, the largest number of complaints IIROC receives involves unsuitable investments. In 2015, almost 50 per cent of prosecutions against individual registrants involved violations of suitability, making it IIROC's top matter prosecuted for the year.
"IIROC's Compliance Priorities Report highlights our ongoing efforts to set high standards of conduct, strengthen compliance among dealer members and foster market integrity," said Wendy Rudd, IIROC's Senior Vice-President, Member Regulation and Strategic Initiatives. "As a public interest regulator, we will continue to proactively oversee IIROC-regulated firms to protect investors and promote healthy capital markets."
IIROC continues to enhance its compliance program to reflect changes in market structure, business risks, investment products, demographics and corporate priorities. The Report highlights areas that IIROC's integrated exam teams will focus on related to member firms' financial operations, registration requirements and business and trading conduct, with the aim of assisting firms to improve their supervision and risk management controls and systems. Under IIROC's risk-based approach, exam teams focus on areas that present the highest risk so that firms can strengthen their compliance, supervision and risk management efforts.
IIROC is the national self-regulatory organization which 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 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
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