IIROC publishes final Sanction Guidelines

Protecting investors and strengthening market integrity

TORONTO, Jan. 13, 2015 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today issued final Sanction Guidelines that set out general principles and key factors to be considered by hearing panels. Effective February 2, 2015, these guidelines will be applied to all disciplinary and settlement proceedings.

The IIROC Sanction Guidelines consolidate, update and replace all previous versions of the Dealer Member and Universal Market Integrity Rule (UMIR) sanction guidelines that are used to assist in determining appropriate sanctions in IIROC disciplinary proceedings.

"We continue to strengthen our enforcement process to better detect, deter and disrupt potential regulatory misconduct, as well as to identify and react to harmful market activity," said Paul Riccardi, Senior Vice-President, Member Regulation. "This initiative helps to ensure consistency and to promote transparency by clearly communicating how IIROC will approach sanctioning decisions in enforcement proceedings."

The guidelines provide a streamlined, principles-based approach to sanctioning, and ensure that the necessary factors are considered and that the sanctions imposed appropriately reflect the gravity of the violations identified. 

IIROC has also finalized companion Policy Statements which provide guidance to stakeholders regarding Staff's approach to three common issues that arise during settlement negotiations and in disciplinary proceedings.

One of Staff's Policy Statements deals with the imposition of registration suspensions.  Where misconduct is sufficiently egregious to warrant a registration suspension of five years or greater, Staff will seek a permanent registration bar.  The Policy Statement also provides clarification of Staff's expectations relating to a respondent's cooperation with its investigation.  Staff will only consider "proactive and exceptional cooperation" as a mitigating circumstance.

***

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

Related Links

http://www.iiroc.ca