IIROC announces update to Restricted Dealer Member Proposal

Feb 07, 2013, 11:25 ET from Investment Industry Regulatory Organization of Canada (IIROC) - General News

Decision made following extensive consultations

TORONTO, Feb. 7, 2013 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published an update notice regarding the Restricted Dealer Member concept proposal it issued for comment in July 2012.

IIROC initially developed the concept proposal in response to policy concerns relating to the scope of activities being undertaken by certain exempt market dealers (EMDs).  The proposal was issued to solicit feedback regarding the possibility of transitioning firms carrying out brokerage activities through an EMD registration to an investment dealer registration, and subject to IIROC supervision.

The IIROC notice explains the reasons underlying its decision not to proceed with the proposal at this time based on feedback it solicited.  In reaching our conclusion, IIROC carefully considered the views expressed in the many comment letters received from various industry and investor stakeholders in Canada and the U.S., as well feedback from additional consultations conducted by IIROC.

The Canadian Securities Administrators (CSA) today also issued a Staff Notice confirming its view that IIROC should oversee firms that conduct brokerage activities (See CSA Staff Notice 31-333 Follow-up to Broker-Dealer Registration in the Exempt Market Dealer Category).  It indicated its intention to publish for comment in 2013 proposed rule amendments to NI 31 - 103 Registration Requirements, Exemptions and Ongoing Registrant Obligations to prohibit EMDs from conducting brokerage activities.


IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.  Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.


SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News