Promotes consistency and enhanced standards
TORONTO, Dec. 18, 2014 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published final guidance outlining common due diligence practices and suggestions for IIROC dealers involved in offering securities to the public as underwriters.
Today's guidance is designed to promote consistency and enhanced standards by setting out: the elements of the underwriting due diligence process; the types of policies and procedures needed by dealer firms to support the underwriting due diligence process; and an appropriate supervisory and compliance framework.
"Capital-raising is essential to a vibrant economy and the professionals who facilitate this important activity play an important role in maintaining fairness and efficiency, and fostering confidence in capital markets," said Andrew Kriegler, IIROC President and CEO.
The guidance acknowledges that Dealer Member firms vary in size and by business model, and appropriate approaches to supervision and compliance for underwriting due diligence must address these differences.
Development of this guidance included extensive input from stakeholders, including consultation with various dealer firms with specific expertise in the venture market and publication for comment of proposed guidance in March 2014. Today's publication reflects input received during the consultative process.
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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