IIROC proposes Revised Sanction Guidelines

Protecting investors and strengthening market integrity

TORONTO, Nov. 6, 2013 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published for comment revised consolidated disciplinary sanction guidelines that set out general principles and key factors to be considered by hearing panels.

The proposed sanction guidelines consolidate and replace the current Dealer Member and Universal Market Integrity Rule (UMIR) sanction guidelines that are used to assist in determining appropriate sanctions in IIROC disciplinary proceedings.

"We are committed to strengthening our enforcement processes to better detect, deter and disrupt potential regulatory misconduct, as well as identify and react to harmful market activity," said Paul Riccardi, Senior Vice-President, Enforcement, Member Policy and Registration.  "This initiative ensures consistency and promotes greater transparency by clearly communicating to stakeholders how IIROC will approach sanctioning decisions in enforcement proceedings."

The proposed guidelines provide a more streamlined, principle-based approach to sanctioning, by eliminating the fine ranges and minimum fines that exist within IIROC's current sanction guidelines.  These revisions will ensure that the necessary factors are considered and sanctions appropriately reflect the gravity of violations.

IIROC has also developed companion policy statements which set out staff's approach to three common issues that arise during settlement negotiations and disciplinary proceedings.

One of staff's proposed approaches deals with the imposition of suspensions.  Where misconduct that is sufficiently egregious to warrant a suspension of five years or greater, staff will seek a permanent bar.  The policy statement also provides clarification on the issue of a respondent's cooperation.  Staff will only consider "proactive and exceptional cooperation" as a mitigating circumstance.

After the public comment period, IIROC will invite those who submitted written comments to a meeting to discuss issues in greater depth.

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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News