The Investment Industry Regulatory Organization of Canada (IIROC), Prosper Canada and CARP are praising the Government of Manitoba for introducing legislation to give IIROC more effective legal tools to protect Manitoba investors.
On March 19, Manitoba’s Minister of Finance, Cameron Friesen, introduced legislative amendments to the Securities Act (Manitoba) that would grant IIROC the legal ability to enforce through the courts its fines against individuals that engage in misconduct. To date, 64 per cent of IIROC’s fines imposed in Manitoba remain unpaid, says the regulator.
The new ability to enforce fines through the courts sends a strong deterrent message to potential wrongdoers, say the organizations.
In addition, IIROC will also receive protection against malicious lawsuits while acting in good faith to carry out its public interest mandate to protect investors.
"We thank the Minister of Finance and the Government of Manitoba for taking this important step to enhance investor protection – particularly for seniors who rely heavily on their retirement investments and represent the largest number of complaints we receive," says IIROC President and CEO, Andrew J. Kriegler. "By introducing these legislative changes, the Manitoba government is demonstrating it is serious about protecting investors and putting wrongdoers on notice that, if you break the rules and abuse the trust of your clients, you will pay the price and be held accountable."
"At CARP, we hear too many stories of seniors who've lost their entire life's savings to rogue rule-breakers who abuse their positions of financial knowledge. Even one case of misconduct is one case too many," says CARP's VP of Advocacy, Wanda Morris. "With fewer workplace pensions, lower interest rates, and increased longevity, our members' nest eggs are more important than ever. Today's changes will give IIROC more authority to demand accountability and seek justice, an important step towards greater investor protection for all Canadians."