IIROC secures stronger enforcement - The Industry Spread

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Investment Industry Regulatory Organization of Canada (IIROC)

IIROC secures stronger enforcement

June 15, 2018
Andrew J. Kriegler, IIROC President and CEO
Andrew J. Kriegler, IIROC President and CEO

IIROC secures stronger enforcement authority thanks to passage of new Manitoba securities legislation Manitoba legislative changes strengthen investor protection

June 5, 2018 (Winnipeg, Manitoba) – The Investment Industry Regulatory Organization of Canada (IIROC), today thanked the Government of Manitoba for passing legislation that gives IIROC more effective tools to protect Manitoba investors.

The amendments to the Securities Act and Commodity Futures Act, which received Royal Assent, provide IIROC with the legal authority to more effectively and consistently enforce its rules and discipline those who break them.

This legislation provides IIROC:

 the ability to enforce through the courts its fines against individuals that engage in misconduct, sending a strong deterrent message;

 the protection against malicious lawsuits while acting in good faith to carry out its public interest mandate to protect investors; and

 the right to appeal a decision made by an IIROC hearing panel to the Manitoba Securities Commission (MSC).

“We thank Finance Minister Cameron Friesen, the Government of Manitoba, all Members of the Legislature and the MSC for improving investor protection – particularly for seniors who represent the largest number of complaints we receive,” says IIROC President and CEO, Andrew J. Kriegler. “This is a powerfully clear message the Government is sending to rule breakers: if you abuse client trust, you will face repercussions.”

As a pan-Canadian public interest regulator, IIROC has been advocating for these changes with other stakeholders – including CARP and Prosper Canada – so this marks an important day for all parties involved in the fight to protect vulnerable and senior consumers in Manitoba. The province is among six provinces where IIROC has enhanced fine collection authority. Visit our fact sheet for enforcement details across Canada.

“Strengthening IIROC’s authority to discipline misconduct in the investment industry is a key step taken by the Manitoba government,” says Prosper Canada CEO, Elizabeth Mulholland. “This will help shield vulnerable Canadians and will also give regulators the tools they need to take strong enforcement action when rules are broken.”

“One story about a senior who’s lost his life’s savings to a rogue rule-breaker is one story too many,” says CARP’s VP of Advocacy, Wanda Morris. “This legislation takes an important step toward greater investor protection by enabling IIROC to enforce accountability and deter potential wrongdoers.”

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IIROC investigates and prosecutes firms and investment advisors who breach the regulator’s rules by, for example, misappropriating funds from clients, falsely endorsing client signatures and/or making unsuitable recommendations to investors, commonly seniors and vulnerable investors who suffer significant financial losses. In 2017, IIROC completed 127 investigations and 44 prosecutions with more than $4.4 million in sanctions imposed coast-to-coast.

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About IIROC IIROC is the national self-regulatory organization that 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 debt and equity marketplaces. IIROC does not rely on any government funding to fulfill its mandate to protect investors and support healthy capital markets but does require legislative support to ensure it has the enforcement tools needed to do that job effectively.

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