Protecting investors and strengthening market integrity
TORONTO, Nov. 6, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today published for comment revised consolidated disciplinary sanction guidelines that set out general principles and key factors to be considered by
The proposed sanction guidelines consolidate and replace the current
Dealer Member and Universal Market Integrity Rule (UMIR) sanction
guidelines that are used to assist in determining appropriate sanctions
in IIROC disciplinary proceedings.
"We are committed to strengthening our enforcement processes to better
detect, deter and disrupt potential regulatory misconduct, as well as
identify and react to harmful market activity," said Paul Riccardi,
Senior Vice-President, Enforcement, Member Policy and Registration.
"This initiative ensures consistency and promotes greater transparency
by clearly communicating to stakeholders how IIROC will approach
sanctioning decisions in enforcement proceedings."
The proposed guidelines provide a more streamlined, principle-based
approach to sanctioning, by eliminating the fine ranges and minimum
fines that exist within IIROC's current sanction guidelines. These
revisions will ensure that the necessary factors are considered and
sanctions appropriately reflect the gravity of violations.
IIROC has also developed companion policy statements which set out staff's approach to three common issues that arise during
settlement negotiations and disciplinary proceedings.
One of staff's proposed approaches deals with the imposition of
suspensions. Where misconduct that is sufficiently egregious to
warrant a suspension of five years or greater, staff will seek a
permanent bar. The policy statement also provides clarification on the
issue of a respondent's cooperation. Staff will only consider
"proactive and exceptional cooperation" as a mitigating circumstance.
After the public comment period, IIROC will invite those who submitted
written comments to a meeting to discuss issues in greater depth.
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
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