IIROC releases draft sanction guidelines

November 7, 2013

The Investment Industry Regulatory Organization of Canada (IIROC) yesterday published for comment updated draft sanction guidelines that set out the principles and factors regarding the imposition of sanctions that may be considered in IIROC disciplinary proceedings. 

The draft guidelines, which consolidate the current Dealer Member and UMIR sanction guidelines, are intended to assist enforcement staff and respondents in the negotiation of settlement agreements, help hearing panels in determining whether to accept settlement agreements and assist hearing panels in determining the appropriate sanctions after disciplinary hearings. The draft guidelines reflect the following material changes to the current sanction guidelines, namely: (i) the elimination of prescribed fine ranges and/or suggested minimum fines; and (ii) the treatment of a respondent's inability to pay.

IIROC also released three draft companion policy statements that, while not part of the guidelines, provide IIROC staff's views in respect of their approach to suspensions and permanent bars, internal discipline by dealers and credit for cooperation, each of which commonly arises in the negotiation of settlement agreements or in the imposition of sanctions by a hearing panel following a contested disciplinary proceeding.

IIROC is accepting comments on the draft guidelines and policy statements until February 3, 2014. For more information, see IIROC Staff Notice 13-0269.

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