IIROC publishes final membership disclosure rules

Increasing investor awareness

TORONTO, June 16, 2016 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published final rule amendments which set out requirements for IIROC Dealer Members to disclose that they are regulated by IIROC and link their websites directly to IIROC's searchable database of advisors working for these firms.

The new IIROC Membership Disclosure Policy is designed to raise public awareness about which investment firms and individuals are regulated by IIROC, and the requirements and ethical and professional standards to which they must adhere. Investors will also be able to check if the firm or individual has been disciplined by IIROC.

"As a public interest regulator, we believe these rule changes will help investors have a better understanding of the regulatory environment and what is expected of IIROC-regulated firms and their representatives," said Wendy Rudd, IIROC Senior Vice President, Member Regulation and Strategic Initiatives.

Effective January 1, 2017, under IIROC's requirements, dealer members must:

-   display the IIROC logo at each business location to which the public has access
-   distribute the IIROC official brochure, in print or electronic format, to new retail clients at account opening and existing retail clients upon request
-   include the IIROC logo and a link to the IIROC website on the home page of their websites
-   when providing services to retail investors, include a link and clearly visible reference to IIROC's online advisor check database (IIROC AdvisorReport) on their website homepage and on any other Dealer Member webpage that includes a profile of an IIROC-regulated investment advisor.

Effective July 1, 2018, investment firms must include the IIROC logo on all client account statements.

"In requiring investment firms to more prominently disclose how they are regulated, we hope investors will learn more about the high standards that must be met and the protections that are in place for investors dealing with IIROC-regulated firms and their advisors," said Lucy Becker, Vice President of Public Affairs and Member Education Services.

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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 supporting healthy Canadian 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

Karen Archer, Manager, Media Relations, 416 865-3046, [email protected]; Paul Howard, Director, Communications & Public Affairs, 416 646-7279, [email protected]