The Investment Industry Regulatory Organization of Canada (IIROC) has released its Annual Report for 2016-17. The report highlights milestones achieved in the first year of the regulator’s three-year strategic plan.
"IIROC has made significant progress this year in achieving the priorities set out in our three-year Strategic Plan, including several initiatives that will provide a more consistent level of investor protection across Canada," said Andrew Kriegler, IIROC President and CEO, in a statement issued Aug. 28.
Ability to collect fines through courts
Among the milestones achieved, IIROC’s report underlines its advocacy efforts that have led to changes enacted by provincial governments. “IIROC now has the ability to collect fines through the courts in Ontario and Prince Edward Island. These provinces joined Alberta and Quebec in sending a strong deterrent message to potential wrongdoers that they will not be able to avoid paying disciplinary penalties when they break IIROC's rules.”
IIROC also highlighted that Alberta has become the first jurisdiction in Canada to provide IIROC with more effective legal authority to collect evidence during investigations, and to grant IIROC and its disciplinary hearing panels protection from lawsuits while undertaking their public interest regulatory responsibilities.
Co-operative agreements with insurance regulators
The annual report also underlines the signing of co-operative agreements with insurance regulators in Alberta, British Columbia and Saskatchewan, allowing the regulators to share information on investigations and disciplinary actions, as well as enabling joint investigations. “These agreements, along with those previously signed with insurance regulators in Ontario and Quebec, prevent wrongdoers from moving to a different jurisdiction or switching regulators to avoid sanctions and hide prior wrongdoing,” says IIROC.
Best interest requirements
IIROC also completed a review of a cross-section of firms to assess how well they are meeting the best interest requirements of IIROC's conflict of interest rules regarding compensation, particularly around resolving conflicts in the best interests of the client.