IIROC and FSCO to share info on rule-breakers

By Staff | March 30, 2016 | Last updated on March 30, 2016
2 min read

IIROC and FSCO have signed an information-sharing agreement aimed at providing more effective regulation and strengthening consumer protection in Ontario.

Under the Memorandum of Understanding (MOU) agreed by IIROC and FSCO, the two regulators will share the decisions and sanctions of their respective disciplinary processes. Disciplinary decisions or actions taken by one regulator will trigger a review of the sanctioned individual’s activities by the other regulator, including consideration of the suitability of the individual for approval, licensing or registration. This may result in an investigation or other appropriate disciplinary action.

Read: IIROC wants court authority to collect fines

According to the MOU, IIROC and FSCO will also, where appropriate, conduct joint investigations and share relevant records and documents when both regulators are investigating the same individuals.

“Ontario investors will benefit from the protections provided by our increased collaboration,” says Andrew J. Kriegler, president and CEO of IIROC. “Investors must be protected from disciplined individuals who might seek to avoid sanctions and continue working in another part of the financial services industry.”

“The lines that once clearly delineated the various financial services industries are being blurred as the sector evolves and more individuals become active in multiple areas,” says Brian Mills, interim CEO and Superintendent of Financial Services. “Greater cooperation and coordination between regulators is becoming an increasingly important part of our work to protect consumers.”

The agreement follows a similar accord announced in November between IIROC and the Chambre de la sécurité financière in Quebec. IIROC has more than a dozen such agreements with other Canadian and international regulatory organizations and is pursuing more agreements to improve the consistency and effectiveness of the regulatory system that protects Canadian investors. FSCO also has a number of MOUs designed to support regulatory collaboration across regulated sectors, and is continuing to pursue additional partnerships.

Also read:

Industry group reacts to IIROC’s game-changing proposal

IIROC’s plain language rule book republished for comment

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.