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28-705: It works in parallel to another Canadian SRO, the Investment Industry Regulatory Organization of Canada (IIROC), which is responsible for the distribution of equities, ETFs , and other exchange traded products such as closed-end funds . The MFDA was created in June 1998 through an initiative by the Canadian Securities Administrators (CSA) in response to the rapid growth of mutual funds in Canada in

56-581: A client without the client's written consent. IIROC also imposed penalties for not disclosing the commission-sharing arrangement with its clients. Blackmont Capital and Duke were assessed a total of $ 857,500 in fines by IIROC. In 2011, the British Columbia Securities Commission (BCSC) overturned IIROC's decision and penalties against Blackmont Capital and Duke. A BCSC appeal panel contended that Blackmont and Duke's act of not disclosing their commission-sharing arrangement

84-713: A result. IIROC penalized Alboini with a suspension of two years, a permanent ban from being an "ultimate designated person" and fines totaling $ 750,000. Northern Securities appealed IIROC's decision to the Ontario Securities Commission (OSC). The OSC overturned one count against Alboini and Northern Securities, namely that Alboini and Northern Securities had not corrected deficiencies found in IIROC compliance reviews. The OSC also overturned IIROC's penalties against Alboini and Northern Securities, saying that IIROC should not have announced serious penalties at

112-729: A system that would provide for adequate disclosure and that would set high standards of self-regulation, backed by strong government supervision and powers to enforce proper practices. 1967 – the Minister of Finance introduced legislation to establish the Canada Deposit Insurance Corporation (CDIC) to ensure the safety of small deposits and bring about a gradual improvement in the minimum financial standard of deposit-taking institutions in Canada. In 1983, legislative amendments extended CDIC's mandate to include assisting to maintain public confidence and stability in

140-548: A trade organization to coordinate financing of Canada's war effort. It was renamed the Investment Dealers Association of Canada in 1934. Throughout most of its history, the IDA serve both as a regulator and as an advocacy organization for the securities dealers. In 2006, IDA narrowed its focus to regulation and transferred its industry association role to a new separate and independent industry association,

168-622: Is an independent agency of the Government of Canada reporting to the Minister of Finance created "to contribute to public confidence in the Canadian financial system". It is the sole regulator of banks, and the primary regulator of insurance companies, trust companies, loan companies and pension plans in Canada. The current Superintendent is Peter Routledge, who was appointed in June 2021. He replaced Jeremy Rudin, who retired. The term of

196-566: Is subject to CSA oversight and regular operational reviews. The CSA (Canadian Securities Administrators) investigated IIROC for the loss of personal financial data of thousands of brokerage clients after IIROC announced that it lost a mobile device containing the information. The device had not been encrypted, which is in violation of IIROC policy. The case reviewed IIROC's current policies, controls and procedures around information security . More than 50,000 Canadian brokerage clients, from 32 investment firms, had personal financial information on

224-711: The Canadian Investment Regulatory Organization (CIRO). Andrew J. Kriegler was appointed president and chief executive officer of IIROC on November 1, 2014. Before joining IIROC, Kriegler was deputy superintendent at Canada's banking regulator, the Office of the Superintendent of Financial Institutions , or OSFI, where he was responsible for supervising hundreds of federally regulated financial institutions. Kriegler succeeds Susan Wolburgh Jenah, who headed IIROC's predecessor,

252-539: The Domestic Stability Buffer (DSB), a capital buffer that mandates a portion of the percentage of loans that Canada's six largest banks must keep in reserve in case of adverse circumstances such as a financial downturn where some borrowers may be unable to keep making payments on their loans. Late 1800s – establishment of the Office of the Superintendent of Insurance (OSI), which subsequently became

280-634: The BCSC overturned IIROC's decision against Steinhoff. In overturning IRROC's decision, the BCSC stated that IIROC's ruling against Steinhoff was not supported by the objective evidence, but was made on the basis of character evidence. The BCSC panel also concluded that Steinhoff was entitled to defend herself and therefore overturned the charges against her for obstructing IIROC's investigation. The organization has been involved in litigation over its power to discipline former members for their conduct while they were members. An Ontario Divisional Court decision in

308-467: The Canadian financial system. Early 1960s – Porter Royal Commission reviewed structural and operational issues affecting the financial system and financial institutions in Canada. The commission's report concluded the financial system was sound, but developments had moved beyond the current state of laws and regulatory practices. Porter argued the public could not be insulated from loss in dealing with public institutions and markets. The Commission called for

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336-713: The Department of Insurance (DOI). The DOI was responsible for overseeing federally licensed life insurance companies, property and casualty insurance companies, trust and loan companies and pension plans, and for providing actuarial services to the government. 1925 – the Office of the Inspector General of Banks was established in response to the Home Bank failure and was responsible for regulating Canada's chartered banks. Early 1930s – Royal Commission on Banking and Currency reviewed banking and currency issues in

364-399: The IIROC dismissed all charges against Berry. In September 2010, IIROC contended that a Vancouver brokerage firm, Blackmont Capital Inc., and an employee, Dean Shannon Duke, acted against two IIROC rules in agreeing to share trading commissions with a third party. In December 2010, IIROC imposed penalties on both Blackmont Capital and Duke for splitting commissions with people associated with

392-456: The Investment Dealers Association of Canada (IDA) before becoming IIROC's first president and CEO in 2008. At the IDA, she had taken over the post from Joe Oliver , who was alter elected as a Member of Parliament and went on to serve as federal Minister of Finance . IIROC operates under Recognition Orders from the Canadian Securities Administrators (CSA), which is the umbrella for Canada's provincial and territorial securities regulators. IIROC

420-665: The Investment Industry Association of Canada. Market Regulation Services Inc. was formed in 2002 in response to the implementation of National Instruments 21-101 Marketplace Operation and 23-101 Trading Rules , which require an independent regulation services provider to regulate trading in all Canadian marketplaces, including the TSX . In January 2023, IIROC merged with the Mutual Fund Dealers Association of Canada (MFDA) to form

448-552: The Investment Industry Regulatory Organization of Canada (IIROC) to form the Canadian Investment Regulatory Organization (CIRO). The MFDA regulates the operations, standards of practice and business conduct of its Members and their representatives with a mandate to enhance investor protection and strengthen public confidence in the Canadian mutual fund industry. The mutual fund Dealerships collectively and formally represent themselves to

476-579: The MFDA represented 90 mutual fund dealer members. These members include 79,789 approved persons and $ 570.968 Billion in Assets under Administration ("AUA") https://mfda.ca/members/membership-statistics/ As of February 2020, the MFDA represented 91 mutual fund dealer members. These members include 78,256 approved persons and $ 573.664 Billion in Assets under Administration ("AUA") https://mfda.ca/members/membership-statistics/ In January 2023 MFDA merged with

504-949: The MFDA through the Federation of Mutual Fund Dealers FMFD . Investment Industry Regulatory Organization of Canada The Investment Industry Regulatory Organization of Canada ( IIROC ; French : Organisme canadien de réglementation du commerce des valeurs mobilières , or OCRCVM ) is a non-profit, national self-regulatory organization (SRO). Established through the merger of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS) on June 1, 2008, IIROC oversees all investment dealers and trading activity on debt and equity markets in Canada . The organization sets regulatory and investment industry standards and has quasi-judicial powers in that it holds enforcement hearings and has

532-583: The appointment is seven years. OSFI's mandate is to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks. The Office of the Chief Actuary, an independent unit operating within OSFI, provides a range of actuarial valuation and advisory services to the Government of Canada. The OSFI sets

560-415: The device. At least one source has called the incident a cover up. IIROC charged David Berry with securities law violations that were used by Scotiabank as grounds for his dismissal. David Berry claims his dismissal and the reputation damage stemming from the IIROC charges have cost him $ 105M dollars. In a ruling on January 15, 2013, more than seven years after the initial accusation, a hearing panel of

588-514: The financial system. Mid-1980s – increased international competition and the failure of two Canadian banks and the subsequent enquiry into these failures by the Honourable Willard Z. Estey highlighted the need to ensure a sound approach to handling the risks associated with the financial marketplace. July 1987 – to ensure a coordinated approach to supervision and a modern regulatory framework for Canada's financial system, and acting on

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616-489: The late 1980s. As of July 2013, the MFDA represented 115 mutual fund dealer members. These members include 81,134 approved persons and 359.4 Billion dollars in investor assets, commonly referred to as Assets under Administration (AUA). As of September 2018, the MFDA represented 91 mutual fund dealer members. These members include 80,177 approved persons and $ 561 Billion in Assets under Administration ("AUA") https://mfda.ca/members/membership-statistics/ As of October 2019,

644-714: The matter of Stephen Taub ruled the Ontario Securities Act does not allow this. The British Columbia Court of Appeal reached a different conclusion in the matter of Charles Dass and upheld a decision of the British Columbia Securities Commission that IIROC does have jurisdiction over former members. Later the Ontario Court of Appeal reversed the Ontario Divisional Court decision and reached

672-466: The power to suspend, fine and expel members and registered representatives, such as advisors. However, it has often been criticized by investor advocates as ineffective. IIROC was formed on June 1, 2008, through the merger of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS). The Bond Dealers Section of the Toronto Board of Trade was formed in 1916 as

700-773: The recommendations of the Estey commission, the government proclaimed the Financial Institutions and Deposit Insurance Amendment Act and the Office of the Superintendent of Financial Institutions Act. This latter Act joined the Department of Insurance and the Office of the Inspector General of Banks to form OSFI, which was given the powers to supervise and regulate all federally regulated financial institutions. May 1996 – Bill C-15 receives Royal Assent. This new legislation clarifies OSFI's prime responsibilities as helping to minimize losses to depositors, policy holders, and pension plan members and to maintain public confidence in

728-545: The same conclusion as the British Columbia Court. In Saskatchewan and Alberta , provincial securities regulations state explicitly that self-regulatory organizations have the power to pursue enforcement activities with regards to former members. Office of the Superintendent of Financial Institutions (Canada) The Office of the Superintendent of Financial Institutions ( OSFI ; French : Bureau du surintendant des institutions financières , BSIF )

756-469: The same time as their decision. IIROC imposed charges against broker, Carolann Steinhoff. Focusing on Steinhoff's activities between 2004 and 2007, IIROC contended that Steinhoff had instructed her assistants to falsify client documents and that she had obstructed IIROC investigations. Part of IIROC's contentions related to Steinhoff's instruction to her assistant to cut and paste a client's signature from an existing form to an unsigned guarantee. In 2011,

784-485: Was not against public interest. The BCSC reversed IIROC's verdict and the imposing of its fines. An Oct. 2012 IIROC Hearing Panel dismissed all allegations made by IIROC against Evergreen Capital Partners Inc. executives Loretta Carbonelli and Gerald T.Conway. In 2012, IIROC contended that activist investor, Vic Alboini, and two other executives at Northern Securities Inc. had improperly obtained credit for Jaguar Financial Corporation and had risked Northern Securities as

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