IIROC releases webcast on "accredited investor" issues

TORONTO, April 3, 2012 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) has produced an educational webcast to provide insight into issues related to "accredited investors," a special group of investors that must meet certain criteria specified in securities regulation.

If they meet these criteria, "accredited investors" may purchase securities sold without the regulatory requirement to publish and distribute a product prospectus. The webcast explains how advisors are still required to meet obligations to ensure investments are suitable for clients, even when those clients meet the "accredited investor" criteria. Valuable information for investors in the video includes tips about the higher risks "accredited investors" face when they buy securities that are offered without a prospectus.

"It's essential that advisors and their clients understand the implications of 'accredited investor' status before proceeding with any securities purchase," says Rosemary Chan, IIROC's Senior Vice President of Member Compliance and General Counsel.

"This video helps bring added clarity and public awareness to an advisor's suitability and due diligence requirements in working with his or her clients.  Investor protection is an important part of our mandate and investor and advisor education play a critical role."

Featuring Noel Sequeira, Manager of Business Conduct Compliance at IIROC, the 30-minute webcast Accredited Investors: Important Factors for Consideration and its supplementary materials are available for public viewing at http://web.iiroc.ca/Files/WebcastAccredited/IIROCWebcastAccreditedInvestor_en.wmv.

IIROC registrants wishing to view the program and receive CE credits can access the program at http://w.on24.com/r.htm?e=414492&s=1&k=D615FCAC6F8931077ADF148073D5BBAA.

IIROC produces monthly webcasts on a range of topics and other resource materials to help increase the proficiency and standards of its dealer members and the more than 28,000 advisors who work at its regulated firms.

Investors can access other resources in the Investors section of the IIROC website, including:

• The IIROC AdvisorReport, a free online tool that provides background information, including qualifications and disciplinary history, if any, of all advisors currently registered to work with the public at IIROC-regulated firms.
• Information on how to make a complaint and which options are available for dispute resolution.
• Brochures and other information that address IIROC's role, the benefits of working with an advisor at an IIROC-regulated firm and what's involved in opening a retail investment account.

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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 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.

 

Lucy Becker
Vice President, Public Affairs
416.943.5870
[email protected]

David Thomas
Director, Public Affairs
416.943.6921
[email protected]