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The Investment Industry Regulatory Organization of Canada (llROC) today published its annual Enforcement Report outlining the actions it has taken to prosecute and sanction investment firms and individuals who have breached their professional and/or ethical obligations. The report also highlights how llROC is working to strengthen its enforcement powers to improve investor protection.
llROC reported that the total sanctions it imposed in 2015 increased year over year, while the fine collection rate fell. Last year, llROC levied over $4.5 million against firms and individuals nationally, compared to $3.67 million in 2014. While llROC collected 84% of the fines assessed against firms, it only collected 13% of the fines against individuals across the country.
"As a public interest regulator, we need to have the tools necessary to vigorously and effectively protect the public. That's why we have been seeking legislative changes that would enable us to improve the collection rate of fines and send a strong message that if you breach the rules and abuse the trust of your clients, you must pay the penalty," said llROC President and CEO Andrew Kriegler.
Currently, llROC has the ability to enforce decisions it has sanctioned through the courts in Alberta and Quebec and is pursuing similar amendments to extend this authority in other jurisdictions.
The report also highlights llROC's concerns and the steps it has taken to address the issue of disciplined individuals who avoid regulatory consequences by merely leaving an llROC regulated firm to work in another area of financial services. In 2015, llROC negotiated a Memorandum of Understanding (MOU) with Quebec's Chambre de la securite financiere (CSF) that will automatically trigger review of the sanctioned individuals by the other regulatory organization, which may result in an investigation or other appropriate action.
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