Investment Dealers Association and Market Regulation Services Inc. Combine to Form Investment Industry Regulatory Organization of Canada - IIROC



    TORONTO, June 9 /CNW/ - The Investment Industry Regulatory Organization
of Canada (IIROC) today announced that it has commenced operations as the
self-regulatory organization overseeing all investment dealers and trading
activity on equity and debt marketplaces in Canada. IIROC was created through
the consolidation of the Investment Dealers Association of Canada (IDA) and
Market Regulation Services Inc. (RS).
    IIROC will regulate the educational proficiency and business and
financial conduct of investment dealers and their registered representatives.
IIROC will monitor in real time and on a post-trade basis all trading activity
on the following marketplaces for compliance with market integrity rules: The
Toronto Stock Exchange (TSX); The TSX Venture Exchange (TSX V); Canadian
Trading and Quotation System (CNQ) including its 'Pure Trading' facility;
Bloomberg Tradebook Canada Company (Bloomberg); Liquidnet Canada Inc;
BlockBook (operated by Perimeter Markets Inc.); MATCH Now; OMEGA ATS; and
Chi-X Canada.
    "Merging market and member regulation into a national self-regulatory
organization is a significant step towards modernizing, simplifying and
strengthening Canada's self-regulatory system," said Susan Wolburgh Jenah,
President and Chief Executive Officer of IIROC. "New products, new trading
systems and new technologies must be matched by a more integrated approach to
regulation. Bringing knowledgeable people with common goals and specialized
expertise together under one roof will enhance investor protection and lead to
better, more effective regulation."
    Chair and Chief Executive Officer, Credit Suisse Securities (Canada),
Inc. Ronald S. Lloyd, who serves as Chair of IIROC's Board of Directors, said
"the merger will permit a more effective allocation of regulatory resources
and improve the performance of self-regulation for the benefit of investors
and Canadian capital markets overall."
    "We are very pleased with the quality, expertise and experience of
IIROC's new Board of Directors," Mr. Lloyd continued. "They bring a commitment
to self-regulation and the public interest that will stand our new
organization in good stead. I would like to thank the members of the Boards of
the IDA and RS for their important contributions and to acknowledge the
extraordinary efforts of staff at both organizations."
    In addition to Wolburgh Jenah, the executive management team is comprised
of: Paul Bourque, Senior Vice President, Enforcement, Policy and Registration;
Rosemary Chan, Senior Vice President, General Counsel and Corporate Secretary;
Maureen Jensen, Senior Vice President, Surveillance and Compliance; and Keith
Persaud, Senior Vice President Finance and Administration. The Executive
Management Team will be supported by a management team that includes the
regional Vice President for Quebec, Carmen Crépin, and for Western Canada,
Warren Funt.

    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.

    
       For more information, please visit our website at www.iiroc.ca


    Investment Dealers Association of Canada and
    Market Regulation Services Inc. Merger Backgrounder
    -------------------------------------------------------------------------
    

    Background

    In April 2006, the Investment Dealers Association of Canada (IDA) and
Market Regulation Services Inc. (RS) announced an agreement in principle to
consolidate their operations into a new national self-regulatory organization
(SRO) to oversee investment dealers and trading activity on debt and equity
marketplaces in Canada. Following approval by the Canadian Securities
Administrators (provincial and territorial securities regulators), the
Investment Industry Regulatory Organization of Canada (IIROC) officially began
operations on June 1, 2008.
    IIROC regulates the educational proficiency and financial and business
conduct of Canadian investment dealers and their registered representatives.
IIROC monitors in real time and on a post-trade basis all trading activity on
the following marketplaces for compliance with trading rules: The Toronto
Stock Exchange (TSX); The TSX Venture Exchange (TSX V); Canadian Trading and
Quotation System (CNQ) including its 'Pure Trading' facility; Bloomberg
Tradebook Canada Company (Bloomberg); Liquidnet Canada Inc; Blockbook
(operated by Perimeter Markets Inc.); MATCH Now; OMEGA ATS; and Chi-X Canada.

    Strategic Rationale

    The consolidation of the IDA and RS will simplify, streamline and
consolidate the self-regulatory system while enhancing investor protection,
maintaining fair, efficient and transparent markets and reducing risk to the
Canadian financial system. Further, the consolidation will permit a more
effective allocation of regulatory resources while improving the performance
of self-regulation for the benefit of Canadian capital markets overall.

    Benefits

    The consolidation of the IDA and RS into a national SRO provides a
    number of benefits for market participants, capital markets and
investors.
    Notably, the consolidation:

    
    -   Allows for a single set of standards driven by a consistent and
        harmonized regulatory philosophy.
    -   Provides a single interface for industry participants and investors.
    -   Offers a more comprehensive view of member and market participants'
        operations to more effectively identify and address compliance
        issues, and
    -   Reduces the potential for split jurisdiction, overlapping
        responsibilities and regulatory gaps.
    

    Management

    Susan Wolburgh Jenah will serve as IIROC's President and CEO. In addition
to Ms. Wolburgh Jenah, the Executive Management Team is comprised of: Paul
Bourque, Senior Vice President, Enforcement, Policy and Registration; Rosemary
Chan, Senior Vice President, General Counsel and Corporate Secretary; Maureen
Jensen, Senior Vice President Surveillance and Compliance; and Keith Persaud,
Senior Vice President, Finance and Administration. The Executive Management
Team will be supported by a management team that includes the regional vice
presidents for Quebec, Carmen Crépin, and Western Canada, Warren Funt.

    Governance Structure

    The Board is comprised of 15 directors including the President and CEO,
with an even number of independent and non-independent directors.

    
    -   Five individuals representing Dealer Members;
    -   Two individuals representing the Marketplace Members;
    -   Seven independent Directors; and
    -   The President and CEO.
    

    TSX is entitled to nominate one of the Marketplace Directors as long as
(a) he/she comes from a Regulated Market and (b) this Marketplace and
Marketplaces associated or affiliated with it maintain collectively not less
than 40 per cent market share (as determined under the By-law). The other
Marketplace Director will be a representative of a Marketplace other than one
affiliated with the TSX.

    In addition to Susan Wolburgh Jenah, IIROC's Board of Directors includes:

    
    Industry:

    -   Roger Casgrain - Executive Vice President, Casgrain & Company Limited
    -   Rik Parkhill - Interim Co-CEO TSX Group, Executive Vice President and
        President, TSX Markets
    -   Rob LeSourd - Founding Partner, J.F. Mackie & Company Ltd.
    -   Ronald S. Lloyd - Chairman and Chief Executive Officer, Credit Suisse
        Securities (Canada), Inc.
    -   Wendy Rudd - Chief Executive Officer, TriAct Canada Marketplace LP
    -   Two additional directors to be appointed.

    Independent:

    -   Kerry Adams - President, K. Adams & Associates Limited
    -   David Denison - President and CEO, CPP Investment Board
    -   Michael Grandin - Chairman and Chief Executive Officer, Fording
        Canadian Coal Trust
    -   Daniel Leclair - Corporate Director
    -   Daniel Muzyka - Dean and Professor, Sauder School of Business, The
        University of British Columbia
    -   Gerry Rocchi - Financial Consultant
    -   Grant Vingoe - Partner, Arnold & Porter LLP
    

    Key Dates

    On December 17, 2007, 98.3 per cent of IDA Member firms voted in favour
of a resolution approving the IDA/RS merger.

    Locations

    IIROC offices are located in Vancouver, Calgary, Toronto and Montreal.

    About the Investment Industry Regulatory Organization of Canada

    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.

    
       For more information, please visit our website at www.iiroc.ca
    





For further information:

For further information: Ann Smith, Senior Public Affairs Specialist,
(416) 943-6921 or asmith@iiroc.ca

Organization Profile

Investment Industry Regulatory Organization of Canada (IIROC)

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