As we reported in our May 2022 Bulletin, the Canadian Securities Administrators (CSA) are consulting on the application to consolidate the Investment Industry Regulatory Organization of Canada (IIROC) with the Mutual Fund Dealers Association of Canada (MFDA) by the end of the year. Within the context of this transaction, IIROC released a notice summarizing the initiatives it intends to prioritize in the next year, which includes advancing commitments related to investor protection, supporting industry transformation, and working towards the closing of the amalgamation and creating a new, enhanced self-regulatory organization.

Amongst other activities relating to investor protection, IIROC is looking at the potential to return disgorged funds collected from disciplined firms and advisors to harmed investors and anticipates publishing a proposal later this year. A working group has also made recommendations on how to improve IIROC’s current arbitration program and plans to seek stakeholder comments on issues such as increasing the award limit and publication of decisions later on this year. Staff are also continuing their review of order-execution only services, particularly the point at which interrupted access would become an explicit investor protection issue. IIROC has paused its work on its Expert Investor Issues Panel in light of the new, proposed Investor Advisory Panel that will be established by the new SRO.

With respect to supporting industry innovation, IIROC created a new membership intake team to review new member applications (including with respect to crypto asset trading platforms) with the intent to increase review process efficiencies. IIROC has similarly created a compliance modernization group to look at ways to streamline activities across compliance teams. IIROC has also created cybersecurity self-assessment checklists for IIROC firms to assist them in building operational resilience.

Other previously announced priorities that IIROC will continue to work on include its derivatives rule reform, proposed competency profiles for supervisors, portfolio managers, associate portfolio managers and traders, and its EDI and Anti-Racism programs.

June 30, 2022