IIROC outlines new priorities

By The IJ Staff | June 27 2018 09:45AM

Photo: Freepik

The Investment Industry Regulatory Organization of Canada (IIROC) has outlined 10 areas of focus in its 2019 priorities, dealing with everything from new technology to proposing a safe harbour rule.

“IIROC is taking a forward-looking approach to accommodating new innovations and business models, while continuing to protect investors no matter how they get investment advice and services,” said IIROC President and CEO Andrew J. Kriegler. “Our priorities focus on providing more efficient, relevant and proportionate regulation as we adapt to the changing needs of investors and the industry.”

IIROC said one of its new priorities is to support changes in the industry by completing its industry consultation on the evolution of advice and preparing to regulate industry services delivered through blockchain.

It is also looking at proposing a safe-harbour rule, aligning itself with the Canadian Securities Administrators (CSA), and adding on more tools to help dealers protect the interests of vulnerable investors.

Earlier this year, the Ontario Securities Commission, a member of the CSA, published a notice outlining new initiatives to meet the needs of older investors, working to implement new initiatives to address issues such as financial exploitation and cognitive impairment among older investors that includes a safe harbour for firms and their representatives.

Also included in IIROC’s 2019 priorities:

· considering alternative forms of disciplinary action to provide more flexibility and ensure timely enforcement responses that are tailored and proportionate to the circumstances

· issuing additional guidance on compensation-related conflicts, ensuring it is aligned with the CSA on client-focused reforms and embedded commissions, and

· implementing a new surveillance system which supports advanced analytics and cross-asset and cross-dealer surveillance and investigations to allow IIROC to more easily identify suspicious market activity.

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