Recognition of the Investment Industry Regulatory Organization of
Canada (IIROC)
Notice of Approval
The
Investment Dealers Association of Canada (IDA) and Market
Regulation Services Inc. (RS) have agreed to combine their
regulatory activities into a single organization known as the
Investment Industry Regulatory Organization of Canada (IIROC).
Effective June 1, 2008, the Ontario Securities Commission, British
Columbia Securities Commission, Alberta Securities Commission,
Saskatchewan Financial Services Commission, Manitoba Securities
Commission, Autorité des marchés financiers, Nova Scotia
Securities Commission, New Brunswick Securities Commission,
Newfoundland and Labrador, Securities Division and Securities
Office, Consumer, Corporate and Insurance Services Division,
Office of the Attorney General (Prince Edward Island) (the
Recognizing Regulators) recognized IIROC as a self-regulatory
organization (SRO). Both the IDA and/or RS are currently
recognized as an
SRO
in certain of these jurisdictions.
On February 8, 2008, we published the IIROC application for
recognition for comment. Three comments were received.
A summary of the comments and responses prepared by IIROC is
attached.
The IIROC recognition has the following components:
1. Recognition order with terms and conditions
– The Recognizing Regulators issued orders recognizing IIROC with
terms and conditions based on recognition criteria. A copy of the
Recognition Order is attached.
2. Oversight program
– The Recognizing Regulators established an oversight program for
IIROC under a memorandum of understanding
(MOU). The MOU includes a joint rule review protocol for the
review and approval of rules
3. IIROC documents
– As part of the recognition, the Recognizing Regulators have
approved
IIROC’s By-law No. 1 and
Transition Rule No. 1 that adopts the existing RS and IDA
rules, policies and other similar instruments, subject to
incidental conforming changes made to ensure consistency, and
establishes a process for hearing committees and panels.
4. Continued recognition of the
IDA
–
IIROC applied to continue the recognition of the
IDA for up to five years, and to amend and restate its recognition
orders to ensure the IDA's continuing authority over conduct prior
to June 1, 2008.
As part of the recognition of IIROC, we have approved the
continued recognition of the
IDA.
A copy of the
amended and restated recognition order for the IDA is
attached.
We note that certain of the existing regulations, rules, orders,
policies, notices or other instruments (Provisions) in the
jurisdictions of the various Canadian Securities Administrators
may refer to the IDA or RS or both. As circumstances permit, the
relevant securities regulatory authorities will be reviewing
proposed amendments to their respective Provisions as necessary to
reflect the combination of the IDA and RS to form IIROC. Until
further notice, references to the IDA or RS in existing Provisions
may be treated and interpreted as references to IIROC in the
interim period.
May 30, 2008
Contact:
Barbara Shourounis
Director, Securities Division
(306) 787-5842
