On April 18, 2019, the Canadian Securities Administrators (CSA), along with seven participating jurisdictions, released its oversight review (the Review) of the Industry Regulatory Organization of Canada (IIROC). The risk-based review of IIROC’s functional areas and key processes was carried out under the mandates of the respective jurisdictions.
In conducting the Review, staff identified three low-priority findings:
- An examination module used in the Trading Conduct Compliance department that was not updated on a timely basis to assess new amendments to the Uniform Market Integrity Rule (UMIR) 6.2 Designations and Identifiers;
- the maintenance of the edit-access functionality within the rule interpretation database not being restricted to the Policy department and other applicable IIROC senior staff; and,
- The Registration department’s inadequate monitoring of an external service provider’s re-accreditation of licensing and continuing education courses.
CSA staff carried out the Review in conjunction with the staff of seven of the participating provincial jurisdictions that recognize IIROC (the Autorité des marches financiers; the British Columbia Securities Commission; the Financial and Consumer Affairs Authority of Saskatchewan; the Financial and Consumer Services Commission of New Brunswick; the Manitoba Securities Commission; the Nova Scotia Securities Commission; and, the Ontario Securities Commission – together, the Recognizing Regulators).
The Review did not identify any further concerns other than the ones noted above. The Recognizing Regulators require that IIROC resolve the findings and will continue to monitor and follow up as necessary. The staff of the Recognizing Regulators made no other comments or conclusions on IIROC operations or activities that are outside the scope of the Review.
Staff have also set out certain other expectations regarding various practices and procedures carried out by IIROC across the functional areas reviewed. These expectations are identified for IIROC to take note of and use as a basis for seeking improvements going forward. The expectations are set out in the Risk Assessment and Fieldwork section of the report.
The full Oversight Review Report of the Investment Industry Regulatory Organization of Canada is available for download from the websites of the participating jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.