Investment Industry Regulatory Organization of Canada
Encyclopedia
The Investment Industry Regulatory Organization of Canada, abbreviated IIROC in English or Organisme canadien de réglementation du commerce des valeurs mobilières (OCRCVM) in French, is a non-profit, national self-regulatory organization
(also known as an "SRO"). Established in 2008 through the merger of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS) on June 1, 2008, the IIROC regulates securities dealers which operate in Canada
's equity and debt markets, and is overseen by the Canadian Securities Administrators
.
The organization sets regulatory and investment industry standards and has quasi-judicial powers in that it holds compliance hearings and has the power to suspend, fine and expel members and registered representatives, such as advisers. However, it has often been criticized by investor advocates as ineffective.
The organization has been involved in litigation over its power to discipline former members for their conduct while they were members. An Ontario Divisional Court decision in the matter of Stephen Taub ruled the Ontario Securities Act does not allow this. The British Columbia Court of Appeal reached a different conclusion in the matter of Charles Dass and upheld a decision of the British Columbia Securities Commission that IIROC does have jurisdiction over former members. Later the Ontario Court of Appeal reversed the Divisional Court decision and reached the same conclusion as the British Columbia Court. In Saskatchewan and Alberta, provincial securities regulations state explicitly that self regulatory organizations have the power to pursue enforcement activities with regards to former members.
Self-regulatory organization
A self-regulatory organization is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could be applied in addition to some form of government regulation, or it could fill the vacuum of an absence of government oversight and...
(also known as an "SRO"). Established in 2008 through the merger of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS) on June 1, 2008, the IIROC regulates securities dealers which operate in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
's equity and debt markets, and is overseen by the Canadian Securities Administrators
Canadian Securities Administrators
The Canadian Securities Administrators is an association of provincial and territorial securities regulators in Canada.-List of securities regulators:* BC: British Columbia Securities Commission*: jointly regulates the TSX Venture Exchange...
.
The organization sets regulatory and investment industry standards and has quasi-judicial powers in that it holds compliance hearings and has the power to suspend, fine and expel members and registered representatives, such as advisers. However, it has often been criticized by investor advocates as ineffective.
The organization has been involved in litigation over its power to discipline former members for their conduct while they were members. An Ontario Divisional Court decision in the matter of Stephen Taub ruled the Ontario Securities Act does not allow this. The British Columbia Court of Appeal reached a different conclusion in the matter of Charles Dass and upheld a decision of the British Columbia Securities Commission that IIROC does have jurisdiction over former members. Later the Ontario Court of Appeal reversed the Divisional Court decision and reached the same conclusion as the British Columbia Court. In Saskatchewan and Alberta, provincial securities regulations state explicitly that self regulatory organizations have the power to pursue enforcement activities with regards to former members.