IIROC seeks comment on higher awards

The Investment Industry Regulatory Organization of Canada (IIROC) has called for comment on proposals to raise the award limit available under its arbitration program and to change the rules that govern such procedures.

Under the proposal, award limits would rise to $500,000, from its current limit of $100,000. The rules of procedure would be altered to:

“allow a claimant to opt, at the start of a proceeding, to eliminate the arbitrator’s discretion to award costs against either party, unless that party has acted in a manner that can be characterized as ‘unfair, vexatious, improper, in bad faith or has unnecessarily and unreasonably prolonged proceedings’.”

To read a summary of the public comments IIROC received as part of its ongoing review of the IIROC Arbitration Program, click here.

The 45-day comment period ends on October 8, 2010. Concerned parties should address comment letters to:

Rosemary Chan Senior Vice President and General Counsel Investment Industry Regulatory Organization of Canada 121 King Street West, Suite 1600 Toronto, Ontario M5H 3T9

Any further comments received will be posted on the IIROC website.

(08/25/10)