IIROC has published for comment a concept paper to consider the possibility of establishing lower minimum capital requirements for dealer members with reduced risk profiles.
“IIROC is putting this proposed concept paper out for comment as we explore opportunities to create a more level playing field for IIROC-regulated firms,” said IIROC president and CEO Susan Wolburgh Jenah.
In developing the concept paper, IIROC benchmarked its minimum capital requirements to those of other securities industry regulators in Canada and the U.S. The paper explores the potential of lower minimum capital requirements for qualified Dealer Members, which if implemented, would more closely align IIROC’s requirements to those that apply to other securities industry registrants with comparable business models.
IIROC’s risk-based approach to setting minimum capital and insurance coverage requirements is integral to the proposed concept paper. Firms that might qualify for lower minimum capital requirements have reduced risk profiles because they either do not handle, or have limited access to client cash or securities.
Comments should be made in writing and delivered by July 9, 2014.