IIROC assessed more than $5 million in fines (excluding costs and disgorgement) against firms and registrants over the past year, according to the SRO’s 2012-2013 annual report.
It conducted more than 200 investigations and held more than 50 hearings, which resulted in 26 suspensions and seven terminations.
What’s more, IIROC says it received 7.4% more complaints about firms throughout the 2012-2013 year than in the previous year. In contrast, it received 23.8% fewer complaints about marketplace issues during that same period.
The regulator says nearly 1,500 complaints were filed directly to dealers from clients, an increase of 8.7% over last year. IIROC adds about 45% of all case assessment files dealt with suitability complaints from investors, while about 43% involved seniors.
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IIROC’s 2012-2013 initiatives included:
- a three-part study on high-frequency trading in Canadian equity markets;
- a proposal to enable enhanced regulatory oversight of debt market activity;
- ongoing work with IIROC-regulated firms to implement the CRM reforms;
- efforts to make compliance examinations more streamlined and effective; and
- active engagement with global regulators regarding investment industry standards.
The report also outlines IIROC’s seven priorities for the year to come (see pages 19 through 23 for more).
IIROC CEO Susan Wolburgh Jenah wrote it’s been a tough year for the industry since “Canada’s capital markets structure has undergone significant changes.”
Also, she says, “The recent performance of the equity market reflects Canada’s dependence on…natural resources and commodities. It’s been a challenging environment for capital raising, traditional equity underwriting and trading activity.”
To meet customer demands, Wolburgh Jenah adds firms are “introducing new business lines,” including wealth management and holistic financial planning. She adds the range of investment products has also expanded.
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The SRO plans to help firms by “prioritizing our policy agenda and reviewing it periodically to ensure we’re focusing on the right issues, and moving forward with important initiatives in a timely way.”
In August, IIROC previewed its pending regulatory initiatives for the year ahead.
Read: IIROC report highlights upcoming proposals
Further, IIROC’s goal is to keep member fees flat for the next year, “despite [the] remedial costs resulting from the loss of a portable device containing confidential information” in March 2013. Overall, the SRO says the total cost of that incident will likely be $5.2 million, of which $408,000 was incurred during this financial year.
The report adds, “This cost estimate includes: credit alerts, credit monitoring and support costs provided to affected clients; professional services; a dedicated call center and other anticipated expenses.”
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