On March 20, 2015, the Investment Industry Regulatory Organization of Canada released its third annual Enforcement Report, outlining IIROC’s key enforcement initiatives and ongoing work to protect the investing public and maintain fair and efficient capital markets.
The Report details that in 2014, IIROC completed 174 investigations, successfully prosecuted 47 individuals and 10 firms, and imposed fines of $3 million against individuals and $224,000 against IIROC-regulated firms. The majority of IIROC’s enforcement cases throughout the year addressed issues involving seniors and suitability, and the report emphasizes the importance of the “know your client” obligation as fundamental to engaging a proper suitability assessment.
In addition to detailing IIROC’s 2014 investigations and prosecutions, the report also highlights key enforcement priorities, including the protection of senior and vulnerable investors, as well as the progress made on important policy matters. Notable developments in this regard include IIROC revising sanction guidelines and submitting a consolidated enforcement rule proposal to the CSA, as well as the publishing of a quarterly unpaid fines report which identifies individuals who have not paid the full amount of fines and costs imposed as a result of disciplinary actions.