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IIROC and FSCO to share disciplinary information

By Andrew Rickard | March 31 2016 01:23PM

The Investment Industry Regulatory Organization of Canada (IIROC) and the Financial Services Commission of Ontario (FSCO) have signed an agreement to share information about their disciplinary decisions and sanctions.

IIROC and FSCO announced March 30 that they had signed a memorandum of understanding (MOU). Should there be a disciplinary decision or action taken by one regulator, it will now trigger a review of the sanctioned individual’s activities by the other regulator, which will consider whether or not the individual in question is suitable for approval, licensing, or registration.

Joint investigations

"This may result in an investigation or other appropriate disciplinary action," reads the joint statement. "According to the MOU, IIROC and FSCO will also, where appropriate, conduct joint investigations and share relevant records and documents when both regulators are investigating the same individuals."

The regulators say that the MOU will help to protect investors against advisors who might try to avoid sanctions and keep working in another part of the industry, and note that IIROC came to a similar arrangement with the Chambre de la sécurité financière in Quebec late last year.

Protecting consumers

“The lines that once clearly delineated the various financial services industries are being blurred as the sector evolves and more individuals become active in multiple areas,” comments Brian Mills, interim CEO and superintendent of financial services at FSCO. “Greater cooperation and coordination between regulators is becoming an increasingly important part of our work to protect consumers.”

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