The Investment Industry Regulatory Organization of Canada (IIROC) published its annual Enforcement Report on May 4. Suitability accounted for 45 per cent of all prosecutions while seniors represented almost 40 per cent of all cases reviewed and approximately 30 per cent of prosecutions.
In 2017, the regulator received 1,163 complaints and completed 127 investigations, referring 46 per cent of these to Prosecutions.
Actions against firms
IIROC says another significant highlight of the year was its actions against firms and senior compliance personnel, “with the number of prosecutions involving firm supervisory failings increasing by 25 per cent and total fines against firms almost doubling.”
The total sanctions imposed on disciplined individuals increased year over year to $3.4 million, up from $3.1 million in 2016. The regulator collected 91.2 per cent of the fines it imposed against firms in 2017 and 16.2 per cent of fines against individuals. This is almost double last year's rate of 8.3 per cent. However, despite this increase in its collection rate, IIROC acknowledged that there remains much work ahead, “with more than $32 million in outstanding fines imposed over the past decade across the country.”
The regulator highlighted that various provinces have given IIROC the authority to collect disciplinary fines through the courts, which will enable it to improve enforcement of fines.
"These legislative changes make a positive and crucial contribution to IIROC's ability to protect Canadian investors," says Elsa Renzella, IIROC's Senior Vice-President, Registration and Enforcement. "In jurisdictions where our authority is greater, we see an overall change in behaviour among sanctioned advisors taking their responsibilities more seriously. This sends an important message: our regulatory system has integrity and, although the vast majority of advisors are ethical and fair, IIROC will hold wrongdoers accountable."
To learn more, consult the report on IIROC’s website.