The Investment Industry Regulatory Organization of Canada has released its third annual enforcement report.
The report shows that, in 2014, IIROC imposed fines of $3 million against individuals, and of $224,000 against registered firms. It also:
- completed 174 investigations;
- prosecuted 47 individuals and 10 firms;
- suspended and/or terminated 4 firms, and suspended 21 individuals; and
- permanently barred 8 individuals from working at an IIROC-regulated firm in a registered capacity.
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Last year, cases involving suitability represented the largest number (40%) of regulatory prosecutions by IIROC against individuals. But, at the firm level, it also pursued a number of retail supervision cases.
“Over the past year,” says the report, “IIROC’s detected an increasing number of potential market-related violations by clients of IIROC dealers. Matters involving the clients of IIROC dealers fall outside of IIROC’s jurisdiction and are referred to the relevant CSA jurisdiction, [so] IIROC enforcement has focused on the Dealer Member’s oversight of these client activities, including the adequacy of their supervision of client trading, designed to prevent manipulative and deceptive trading practices.”
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The report also reaffirms one of IIROC’s key priorities will continue to be protection of seniors and vulnerable investors. To assist the investing public, IIROC has begun publishing a quarterly Unpaid Fines Report, which identifies individuals who have not paid the full amount of fines and costs imposed as a result of disciplinary actions.
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