IIROC has been granted new legal powers in Prince Edward Island.
The Office of the Superintendent of Securities for the province and IIROC have announced that, through an authorization order, IIROC now has authority to collect fines against individuals it has disciplined directly through the Supreme Court of Prince Edward Island.
The order says the SRO requested, and was granted permission to, conduct hearings, exercise authority, and file decisions and settlement agreements. In a release, IIROC says the order will also “improve the cooperation of witnesses and evidence-gathering for its disciplinary hearings, which will enable IIROC to obtain the best evidence to prosecute wrongdoers.”
Based on this change, PEI now joins Alberta and Quebec as provinces that have granted IIROC the ability to collect disciplinary fines directly through the courts. Alberta has also granted IIROC the authority to require the co-operation of witnesses at IIROC hearings held in that province.
Previously, IIROC required approval from the superintendent for each individual case before it could file enforcement decisions with the Supreme Court of PEI to collect fines against disciplined individuals who tried to evade payment.
In 2016, IIROC says it levied more than $4.5 million against firms and individuals nationally, but collected less than 20% of fines against individuals. There is approximately $30 million in unpaid fines against individuals owing to IIROC, dating back to 2008.
In Quebec and Alberta, however, IIROC’s collection rates are “significantly higher” than the national rate, says IIROC. In a 2016 analysis provided to Advisor.ca, Quebec and Alberta come in third and fourth in fines owed by dollar amount, but both provinces have a lower proportion of outstanding fines than they do approved persons.
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