The Investment Industry Regulatory Organization of Canada (IIROC) has released its annual report for 2021 and 2022, discussing the progress the regulator made during its fiscal 2022 year.
“IIROC accomplished a great deal this year, including completing our quest to be able to enforce fine collection through the courts in every province and territory across the country,” says IIROC president and CEO, Andrew J. Kriegler. (With the passage of legislation in Newfoundland and Labrador, IIROC is now able to enforce fine collection through the courts in every Canadian province and territory.)
Fines collected
During the year, IIROC assessed nearly $3.5-million in fines against firms and individuals, not including costs or disgorgement. Of those fines, 100 per cent were collected from firms, while only 18 per cent of individual fines were collected during the year.
“We are also pleased to collaborate with the Montreal Exchange to allow our surveillance teams to work together to strengthen market integrity and further support our ability to share information and address problematic trading practices,” Kreigler adds. In December 2021, IIROC and the Montreal Exchange and the Canadian Derivatives Clearing Corporation entered into a memorandum of understanding to enable cross-asset monitoring of the derivatives and underlying cash markets in Canada.
New self-regulatory organization
Kreigler also states that the firm is excited about the future of the new self-regulatory organization (SRO) made up of both IIROC and the Mutual Fund Dealers Association of Canada (MFDA), which is expected to come into being on January 1, 2023. “We continue to make great strides together with our MFDA and Canadian Securities Administrators colleagues to create a single, enhanced, self-regulatory organization,” he states. He also writes that he is honoured to have been selected to lead the new organization when it is formed.
The annual report outlines how IIROC works through advisory committees and district councils, looks at the number of approved persons, branch offices and head officers IIROC regulates by province, member firms’ revenues by province, and the number of firms it regulates, ranked by the number of approved persons at each firm.
Early resolution offers
Early resolution offers were also reviewed, with IIROC saying its staff believes the program has been very successful. Plain language rule developments, arbitration program developments and the regulation of crypto asset trading platforms is also discussed in the annual report.
Under other priorities, the regulator discusses proposed competency profiles, as well, saying they are currently working on profiles for supervisors, traders, and portfolio managers. “We plan to publish a consultation paper on those competency profiles in the fall of 2022,” they write.
Outlook for 2023
In its management discussion and analysis, the regulator also discusses risks, and its outlook for 2023. Key priorities, in addition to the merger of SROs, includes efforts to advance investor protection initiatives and support industry transformation, including the creation of efficiencies in new member application processes and work to ensure that crypto asset trading platforms are fully integrated into the Canadian regulatory system.
