Building a Culture of Compliance - IIROC issues Annual Consolidated Compliance Report

TORONTO, Dec. 4, 2012 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published its Annual Consolidated Compliance Report outlining its key examination priorities for 2012 - 2013.

"Building a culture of compliance is a strategic priority for IIROC," said Susan Wolburgh Jenah, President and Chief Executive Officer of IIROC.  "This compliance report is an important tool that we use to promote higher industry standards, improve investor protection and strengthen market integrity."

At a presentation made to the Annual Compliance & Legal Section (CLS) Compliance Conference held today at the Metro Toronto Convention Centre, IIROC reinforced the importance of IIROC-regulated firms having robust, effective compliance and risk control programs.

"At IIROC, we continue to enhance our compliance and examination program to reflect changes in market structure, business risk, investment products, demographics and identified corporate priorities," said Rosemary Chan, IIROC's Senior Vice-President, Member Compliance, General Counsel and Corporate Secretary, at the conference.

"This report highlights areas that our integrated exam teams will focus on in helping IIROC-regulated firms identify, manage and mitigate potential enterprise-wide risks."

Current areas of focus include Know-Your-Client documentation, non-arm's length investment products, capital and liquidity risk management, outsourcing and electronic trading controls.

IIROC uses a risk-based methodology to allocate regulatory resources to firms and issues that have a higher potential to cause risk and to assist firms in identifying areas where they should be devoting their supervision, compliance and risk management efforts.

While the report also lists common areas that require improvement from the previous examination cycle, almost all significant findings are resolved by firms within the period of time prescribed by IIROC.

"We will continue to work with the industry to raise the bar, instill investor confidence and promote the long-term health of our capital markets," said Ms. Wolburgh Jenah.

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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.  Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News

Lucy Becker
Vice President, Public Affairs
416.943-5870
[email protected]