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IIROC Notice 18-0045 – Enforcement Alternative Forms
Letter Summary:
Enforcement staff at IIROC are considering two proposals to provide for alternative forms of disciplinary actions. The first proposal would create a new program for minor contraventions (“MCP”), where a dealer or approved person agreed to a fixed fee sanction for minor rule contraventions. The program would be a middle ground between a cautionary letter and formal disciplinary action, the latter of which can only be resolved through settlement or a formal disciplinary hearing. One purpose of the MCP would be to provide for a meaningful sanction for a minor contravention of IIROC requirements. The second proposal would involve the use of early resolution officers (“ERO”) to complete settlement agreements earlier in the enforcement process. IIROC intends to make transparent how and why credit was granted pursuant to an early resolution offer.
Overview of the Council’s Comments:
The CAC recommended that several additional items be added to the proposed know-your-client and suitability processes.
We strongly support efforts to allow dealers to tailor their own policies for the CFR requirements in light of their The Council is supportive of initiatives set out in the notice as a means to achieve fair, effective and timely enforcement. The Council is supportive of the MCP as a middle ground between a cautionary letter and a costly, contested disciplinary hearing so long as the name of dealer involved is made available to the public. The Council is less supportive of the ERO and queries why a program constituting early resolution offer is necessary.