IIROC publishes list of compliance priorities for 2020

By The IJ Staff | January 06 2020 02:08PM

Photo: Freepik

The Investment Industry Regulatory Organization of Canada (IIROC) has issued its latest compliance report, highlighting the regulator’s compliance priorities in the year ahead. “This report will serve as an important roadmap for firms,” said IIROC’s senior vice president of market regulation, Victoria Pinnington.

Entitled Helping Firms with Compliance for 2019/2020, the annual compliance report, released Dec. 20, “summarizes current issues and challenges that dealer members should address to improve investor protection and foster market integrity,” say the report’s authors. “This report helps dealers focus their supervision and risk management efforts.”

Among other things, the regulator says is has conducted a comprehensive review and update of the risk models it uses to determine how often dealer members are examined. The report also looks at portfolio manager service arrangements, at trading supervision obligations, client-focused reforms, and discusses limitation of liability clauses in retail client account agreements.

Cybersecurity also features prominently in the report. New rules require mandatory reporting to IIROC when certain cybersecurity incidents occur. An update to the 2015 Cybersecurity Best Practices Guide will be available in early 2020. Starting in March 2020, IIROC will also be incorporating new criteria to assess cybersecurity risk at all dealers.

Going forward, IIROC says it will also publish guidance in 2020 on reporting requirements when firms change their business models, or introduce new business lines or processes. It will also publish guidance on the broader use of automation, particularly in compliance monitoring. Read the complete list of IIROC’s priorities here.

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