IIROC Rule Changes Improve Transparency and Reduce Potential Conflicts
TORONTO, June 13, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today announced that firms will have six
months to implement rule amendments relating to prohibited personal financial dealings and permissible
outside business activities (Attachment A). IIROC's rule amendments take effect December 13, 2013, with the
exception of trustee or executor type arrangements which must be
compliant by June 13, 2014.
The amendments, approved by its recognizing regulators, codify IIROC's
prior position by specifically prohibiting employees and Approved
Persons of IIROC-regulated dealer firms from directly or indirectly
engaging in personal financial dealings with clients. To achieve this,
IIROC Dealer Member Rule 43 includes a general prohibition on engaging
in personal financial dealings with clients and provides a
non-exhaustive list of prohibited dealings.
The amendments to Dealer Member Rule 18.14 expand the scope of the
current rules that apply to "other gainful occupations" to include all
"outside business activities". Further, the rules clarify that a
Registered Representative/Investment Representative must inform their
IIROC-regulated firm of any outside business activity and obtain their
firm's advance approval to engage in any such outside business
The rule amendments follow extensive consultations with stakeholders
over the past three years and are consistent with other IIROC
initiatives designed to improve relationship disclosure, enhance
transparency and reduce potential conflicts.
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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Senior Media & Public Affairs Specialist