IIROC releases 2014 Enforcement Report

Investment Industry Regulatory Organization of Canada (IIROC) - General News

Strengthening investor protection

TORONTO, March 30, 2015 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today released its third annual Enforcement Report which outlines IIROC's key enforcement activities and ongoing work to protect the investing public and maintain fair and efficient capital markets.

In 2014, cases involving suitability represented the largest number (40%) of regulatory prosecutions by IIROC against individuals. At the firm level, IIROC pursued a number of retail supervision cases which arose from the prosecution of individuals in previous years.  

"Our approach demonstrates our commitment to ensuring that the parties involved in an enforcement matter are held accountable, as appropriate, and that those we regulate understand and comply with IIROC dealer conduct and market rules," said Paul Riccardi, Senior Vice President, Member Regulation. 

In addition to detailing IIROC's 2014 investigations and prosecutions, the report also highlights key enforcement priorities, including the protection of seniors and vulnerable investors, as well as the progress made on important policy matters.

In 2014, IIROC finalized revised sanction guidelines and submitted a Consolidated Enforcement Rule proposal to Canadian Securities Administrators for approval. Both initiatives were undertaken to promote the consistency, fairness and transparency of our enforcement process for all stakeholders.

To assist the investing public, IIROC also began publishing a quarterly Unpaid Fines Report, identifying individuals who have not paid the full amount of fines and costs imposed as a result of disciplinary actions.

"Moving forward, we will continue to focus on ways to strengthen our enforcement efforts by ensuring we have the necessary tools to prosecute wrongdoers and send a strong deterrent message to those we regulate," said Riccardi.

Additional Highlights

In 2014, IIROC:

• completed 174 investigations
• successfully prosecuted 47 individuals and 10 firms
• suspended and/or terminated 4 firms and suspended 21 individuals
• permanently barred 8 individuals from working at an IIROC-regulated firm in a registered capacity
• imposed fines of $3 million against individuals and $224,000 against IIROC-regulated firms

In keeping with IIROC's commitment to transparency and accountability, updated Enforcement Reports will be published annually. Print copies are also available upon request. 

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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 by creating and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through the creation and enforcement of market integrity rules regarding trading activity on Canadian marketplaces.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

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June Yee, Manager, Corporate Communications, 416-943-6921, [email protected]; Karen Archer, Senior Media and Public Affairs Specialist, 416-865-3046, [email protected]