- Revised Sanction Guidelines
- April 13, 2015 | Authors: James Gibson; Landon Miller; Laura Paglia
- Law Firms: Borden Ladner Gervais LLP - Toronto Office ; Borden Ladner Gervais LLP - Calgary Office ; Borden Ladner Gervais LLP - Toronto Office
- IIROC Publications
Revised Sanction Guidelines
IIROC Notice 15-0008
On January 13, 2015 IIROC released its Revised Sanction Guidelines (“Guidelines”) effective February 2, 2015. The Guidelines consolidate and replace all previous versions of both the Dealer Member Disciplinary Sanction Guidelines and the UMIR Disciplinary Sanction Guidelines into one set of Guidelines.
In addition to the Guidelines, IIROC published three companion Policy Statements (“Staff Policy Statements”) which purport to provide stakeholders with guidance regarding the Staff’s approach to the issues of registration suspensions and permanent bars, the consequences of internal discipline by a Dealer Member, and credit for cooperation.
Of note are the summary of public comments and IIROC’s responses at Appendix E of IIROC Notice 15-0008 which are as follows:
- warning letters are not part of a Respondent’s disciplinary record. The Guidelines do not intend to broaden the definition of disciplinary record to include warning letters;
- whether a registrant has committed one violation that impacts several different accounts or multiple violations in one account will be considered an aggravating factor;
- suspensions should not be restricted solely to circumstances where there is serious misconduct. IIROC staff does not agree that suspensions are becoming commonplace or imposed in unwarranted circumstances;
- where conduct is egregious, a firm’s size should not be an important consideration in serving to reduce a sanction to a point where specific and general deterrence is negatively impacted;
- internally imposed discipline does not necessarily eliminate the need for formal discipline by IIROC.
On January 19, 2015, IIROC announced approval by the CSA of IIROC’s 2015 and 2016 CRM2 amendments. The list of amendments begins on page 3 of IIROC Notice No. 15-0013. A summary of the nature and purpose of the amendments begins on page 5 of the same notice.
Release of Annual Consolidated Compliance Report
On January 27, 2015, IIROC released its annual consolidated compliance report. Its contents are highly varied and include discussion of:
- IIROC Priorities for 2015 with respect to Financial, Operational, Trading and Business Conduct Compliance;
- Results of reviews and surveys regarding enhanced suitability;
- 2014 Significant Deficiencies;