rules-regulation

The Canadian Securities Administrators (CSA) have approved IIROC’s rule amendments on IIROC’s consolidated enforcement, examination and approval rules.

The consolidated rules will be implemented on September 1, 2016, except Rule 8300, which is effective immediately.

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Implementation

The new transition rule ensures that provisions of the consolidated rules affecting (or indirectly affecting) substantive rights of regulated persons apply only to conduct occurring on or after September 1. Consolidated rules that are procedural in nature will apply as of the September 1, regardless of when the conduct at issue took place. Any ongoing disciplinary proceedings as of today’s date will continue under the procedural rules in force when those proceedings began, even though such rules will be repealed September 1, 2016. New proceedings that begin on or after the implementation date will be governed by the consolidated rules.

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Where to find the consolidated rules

The consolidated rules combine and replace various provisions of IIROC’s Dealer Member Rules and the Universal Market Integrity Rules and constitute a new (third) body of rules, with its own numbering system.

They are now available through the rule book tab under the heading “IIROC Enforcement, Procedural, Examination and Approval Rules” on IIROC’s website.

The Rules of Practice of Procedure have been elevated to the status of full IIROC Rules, embodied in Consolidated Rule 8400. As of September 1, the rules of procedure will not be housed in their former location (accessible through the rule book tab under the heading “IIROC Dealer Member Rules”).

IIROC has also revised certain forms to be used in proceedings under the new procedural rules. Those forms are available in PDF format at the bottom of IIROC’s consolidated rules page.

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History

The original proposal to consolidate certain enforcement, procedural, examination and approval rules was published for comment in a rules notice dated March 23, 2012. Following extensive comments, IIROC staff prepared responses to those comments and made changes contained in a rules notice dated November 14, 2013.

Material changes set out in the republication notice include:

  • defined terms,
  • the confidentiality of enforcement investigations,
  • the consolidated standards of conduct,
  • sanctions for Dealer Members, and
  • expedited hearings (replaced with the new concept of “protective orders”).

IIROC has also added a new provision to Rule 8300 that empowers a public member nominating committee to put forward public member nominees to the hearing committee in each IIROC district. Finally, the SRO revised the proposed transitional rule governing the coming into force of the consolidated rules.

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Originally published on Advisor.ca
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