Priorities / Facts

In progress – work is ongoing

Establish Industry Transformation Working Group

A cross-functional transformation team comprised of senior IIROC staff was established, and is working to address the industry’s feedback as well as other ideas to support access to advice for investors and reduce unnecessary regulatory burden.

Identify rules and guidance that result in unnecessary process and cost, or that limit the appropriate use of technology

IIROC published several guidance notices over the course of the year on topics including e-signatures, the appropriate use of technology in supervision of account opening for order-execution only dealers, the role of guidance, and electronic complaint record retention. In addition, on March 26, 2020, the IIROC Board of Directors delegated to staff the authority to grant certain exemptive relief for members related to issues arising from the COVID-19 pandemic.

Explore new IIROC membership categories

We continue to explore and consider options to provide tailored and proportionate oversight that is appropriate to current and developing models, and to allow for new types of marketplace entrants.

Investor consultation

New investor research was completed regarding investor needs and preferences with respect to their access to advice, as well as barriers investors face. Research results were published in December 2019 and January 2020. With The Strategic Counsel, IIROC surveyed 2,500 Canadians in early 2020 to measure awareness, understanding and perceptions about regulation of the investment industry and benchmark effectiveness of IIROC mandatory membership disclosure amendments, which took effect in January 2017 and July 2018. Aided awareness of investors working with IIROC-regulated firms increased 10 percentage points, from 19% in 2017 to 29% in 2020. Also, in order to enhance how IIROC handles investor complaints, research with past complainants was initiated, and will be completed in the summer of 2020.

Dealer engagement

A significant amount of engagement with dealers was undertaken in the past year, across a range of topics, including client identifiers, derivatives, and crypto-asset trading platforms. We also spoke with the majority of our dealers to solicit their views regarding the CSA’s review of self-regulation. Strategic discussions were also conducted via the firm Risk-Trend Report reviews.

Collaborate with regulatory partners to improve the efficiency and effectiveness of regulation in Canada

IIROC continues to actively engage and collaborate with its regulatory partners on a wide variety of issues.

In progress – work is ongoing

IIROC participated in the finalization of the CSA’s client focused reforms (CFR), which were published in October 2019. IIROC is now in the process of adopting its own CFR rule amendments in accordance with the extended CSA implementation timelines. In February 2020, the CSA (excluding the OSC) published rules banning deferred sales charges (DSCs) for implementation by June 2022. The OSC also published proposed rules restricting DSCs. 

In progress – work is ongoing

IIROC’s proposed requirements for Derivatives Modernization, Phase I were published for public comment in November 2019. Work is continuing on Phase II (margin requirements).

In progress – work is ongoing

The CSA published “Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets” on January 16, 2020. IIROC continues to work with the CSA on developing and publishing a final regulatory framework for crypto trading platforms.

In progress – work is ongoing

IIROC completed the implementation of new, leading-edge technology that significantly enhanced our ability to oversee Canada’s capital markets and to protect investors from potential market abuses. To further enhance our surveillance capabilities, we began to explore the use of artificial intelligence (AI) to improve the efficiency of our alert management.

In progress – work is ongoing

IIROC’s internal analytics team continues to work closely with internal business units to leverage data tools, including predictive modeling, artificial intelligence and machine learning, to improve efficiency and automate manual processes where appropriate.

In progress – work is ongoing

We continue to support the CSA with the launch of their Market Analytics Platform (MAP). We have implemented processes to securely transfer both equity and debt trade data daily using secure cloud and “big data” capabilities. Once the CSA completes the implementation of their MAP system, full deployment of the daily data transfer will begin.

In progress – work is ongoing

PLR implementation deadlines have been extended to align with the CSA’s revised implementation schedule for the client focused reforms. Extensive internal and external training regarding the new requirements was completed.

In progress – work is ongoing

IIROC compliance teams are actively working together to enhance our risk-based approach, to streamline, standardize and optimize examinations, and to assess where we can reduce burden on dealers, while maintaining investor protection. Due to COVID-19, in-person exams were postponed, with a focus on updating our approach to conduct supervision remotely.

In progress – work is ongoing

Initial focus has been on dealer consultations to ascertain the metrics and comparisons that would be of greatest value. Development continues.

In progress – work is ongoing

In May 2019, Saskatchewan granted IIROC the authority to collect fines through the courts. In December 2019, New Brunswick passed legislation providing IIROC with the full enforcement toolkit: the ability to collect fines through the courts; the authority to collect and present evidence during investigations and at disciplinary hearings; and protection from malicious lawsuits while acting in good faith to carry out its public interest mandate to protect investors.

In progress – work is ongoing

In April 2019, IIROC published a second Request for Comments relating to IIROC’s proposed Minor Contravention Program and Early Resolution Offers. We continue to work collaboratively with our CSA partners towards a resolution of issues relating to the proposed programs. 

In progress – work is ongoing

Further to the approval of the proposed rule amendments by the applicable securities regulatory authorities in April 2019, the first phase of the implementation (debt) came into effect in October 2019. The work on phases 2 and 3 (equities) is progressing well and will be implemented on July 26, 2021. We continue to work closely with the industry via a special implementation committee. A new area on the IIROC website is now dedicated to the implementation of phase 2 and 3 and provides greater transparency to all stakeholders.

In progress – work is ongoing

Work is underway on developing our new HR and workplace strategies. HR strategy work will include an evaluation of our organizational culture. We are also evaluating our physical space needs for the future.