Question of the week: What is IIROC?

Submitted by nsscadmin on Wed, 01/17/2018 - 10:00

The Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization (SRO) that oversees all investment dealers and trading activity in debt and equity markets in Canada. IIROC’s mandate is similar to that of the Nova Scotia Securities Commission and other securities regulators in Canada in that they aim to “set and enforce high quality regulatory and investment industry standards, protect investors and strengthen market integrity while maintaining efficient and competitive capital markets.”

IIROC was created in 2008 following the consolidation of the Investment Dealers Association of Canada and the Market Regulation Services Inc. All investment dealer firms and the individual dealers that work for these firms must be registered with IIROC to do business in Canada. Along with the rules and regulations that are set by the Nova Scotia Securities Commission, the firms must also follow a set of rules and regulations that are monitored and enforced by IIROC. These rules and regulations address the proficiency and qualifications of individuals, as well as the business and financial conduct of investment dealers and their registered representatives.

As well as regulation and establishing rules for investment dealers across Canada, IIROC also establishes and enforces market integrity rules for trading activity on Canada’s equity exchanges and alternative trading systems. The trading activity is monitored through IIROC’s Surveillance and Trading Review and Analysis Department.

On January 1, 2023 IIROC was merged with the Mutual Fund Dealers Association of Canada (MFDA) to form the New SRO. The New SRO consolidates the functions of IIROC and the MFDA. The New SRO regulates mutual fund dealers, investment dealers, and acts as the regulation services provider for marketplaces that have retained it as such, including monitoring trading on those marketplaces for compliance with New SRO rules and securities legislation.

For more information on the New SRO visit - https://www.newselfregulatoryorganizationofcanada.ca/

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.