The Investment Industry Regulatory Organization of Canada (IIROC) recently published its annual Enforcement Report (Report), highlighting its enforcement and discipline activities in 2018.
Enforcement Activities in 2018
IIROC conducted 127 investigations in 2018, 52 of which resulted in prosecutions. Of those prosecutions, 42 were against individuals and ten were against firms. Ontario had the most investigations and prosecutions, with 77 and 26 respectively. British Columbia had the next highest number, with 20 and 9 respectively.
The Report indicates that IIROC suspended 21 individuals, permanently barred five individuals from working in a registered capacity, and imposed financial penalties against individuals totalling $3.2 million. According to the Report, IIROC also terminated two firms and imposed almost $1 million in financial penalties against firms.
Among the subject matters resulting in enforcement sanctions either by way of settlement or panel decisions were proceedings involving improper handling of conflicts of interest, suitability obligations, KYC collection and updating, confidentiality of client information, supervision of accounts, duties of senior officers, securities trading involving market manipulation, and sales incentives pertaining to mutual funds.
Priorities for Future Enforcement
IIROC’s priorities for future enforcement initiatives include obtaining legal authority across Canada to collect fines, enhanced authority to collect and present evidence for enforcement proceedings, obtaining statutory immunity for IIROC staff when acting in the public interest, and developing alternative forms of disciplinary action.
You can read the Report here.
DISCLAIMER: This post is intended to convey general information about legal issues and developments as of the date above. It does not constitute legal advice and must not be treated or relied on as such.