This week the Investment Industry Regulatory Organization of Canada (IIROC) was the latest market regulator to release its enforcement activity report for 2015 (see our previous blog posts for the enforcement activity reports published by the MFDA, OSC and CSA). The enforcement report details the disciplinary action undertaken by IIROC last year. IIROC's enforcement activity against investor firms increased while its activity against individual reps declined slightly. IIROC levied over $4.5 million against firms and individuals across Canada. In 2014 this number was $3.67 million.
Interestingly, the report notes that IIROC's collection rate of sanctions imposed is down against both firms and individuals. While IIROC collected 84% of the fines against firms, it collected only 13% of the fines against individuals. As a result of these declining rates, IIROC is calling for its sanctions to be enforced through orders of the court (a power currently only enjoyed in Alberta and Quebec).
IIROC Quick Stats 2015:
- 124 investigations completed
- Successful prosecution of 40 individuals and 12 firms
- Top matter prosecuted once again suitability issues, representing nearly 50% of prosecutions
- Majority of cases involved elderly/vulnerable clients
- Imposed sanctions of $2.95 million against individuals and $1.59 million against firms
- Suspended 3 firms and 26 individuals
Permanently barred 5 individuals from working in an IIROC-registered capacity