IIROC updates expectations regarding compliance and supervision

December 19, 2012

The Investment Industry Regulatory Organization of Canada (IIROC) released a notice earlier this week setting out its expectations with respect to the compliance function at member firms, as well as the roles and responsibilities of firms, boards, management, compliance departments and compliance officers. The notice updates a previous notice issued in 2006 and is intended to ensure consistency between the expectations of IIROC and registration reform related amendments that include new registration categories, changes to the scope of registerable activities and updates on compliance related functions.

Ultimately, the notice covers such issues as (i) the responsibility for compliance; (ii) the distinction between supervisory and compliance roles; (iii) the roles of the dealer, board, management and compliance officer; (iv) when individuals may be subject to enforcement action; and (v) creating an effective compliance program. A number of "tips" are also provided for compliance officers to ensure that expectations are met.

A draft version of the notice was initially published for comment in December 2011. IIROC's summary of comments and responses were also published this week.

For more information, see IIROC Notices 12-0379 and 12-0380.

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