IIROC CA

Executive Summary We are pleased to present our annual Compliance Priorities Report: Helping Firms with Compliance for 2022/2023. This year’s report outlines our hybrid return to the office following the pandemic, and initiatives that support transformation and innovation in the industry – all in the context of the recent consolidation of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). This report also summarizes current issues and challenges that dealers regulated by the New Self-Regulatory Organization of Canada (New SRO) should focus on to improve investor protection and foster market integrity. Together with other supplemental materials, regular...

Be an informed investor - Don't be fooled by fraudsters misrepresenting themselves New Self-Regulatory Organization of Canada (New SRO) is warning Canadian investors not to be fooled by RCE Banque (rcebanque.com). The company is implying they are regulated by the former Investment Industry Regulatory Organization of Canada (IIROC) by displaying a fraudulent version of IIROC’s Advisor Report. RCE Banque is not a member of New SRO and was never registered with IIROC to sell forex or crypto assets, or any other investment products. All investors must be informed and ask themselves important questions before purchasing higher-risk investment products that do not trade on...

Applications Due By: April 17, 2023 Members of the New SRO Regional Councils invite Dealer Members to nominate candidates for election to the Regional Councils in each Region1 where the Dealer Member has offices. 1. Regional Councils Mandate and Role On January 1, 2023, IIROC and the MFDA consolidated into the New SRO. New SRO By-law, Article 10, provides for the creation of Regional Councils with an advisory role. These Regional Councils are not to be confounded with the former MFDA Regional Councils, who had a role similar to the District Hearing Committees mentioned in Article 11 of the New SRO By-law. The Regional...

This webcast highlights a study of failed trades to examine settlement failure of trades executed on Canadian equity marketplaces. Market Regulation Services Inc. (RS) originally published a study of failed trades in 2007. This study was based on a sample of failed trades provided by a group of dealers. Since that time, we have dramatically improved our ability to conduct large-scale data analysis. We felt it was time to refresh our review to ensure our understanding is current and that our regulatory and compliance framework remains effective. Our goal was to provide high-level observations and update our understanding of this...

New Self-Regulatory Organization of Canada (New SRO) is warning Canadian investors not to be fooled by Sohocapitalgroup. On their website, www.sohocapitalgroup.com/, the company is implying they are regulated by the former Investment Industry Regulatory Organization of Canada (IIROC) and is a member of the Canadian Investor Protection Fund (CIPF), by displaying both member logos at the bottom of their homepage. Sohocapitalgroup is not a member of New SRO and was never registered with IIROC to sell forex or crypto assets, or any other investment products. Sohocapitalgroup accounts are not protected by CIPF. All investors must be informed and ask themselves important questions before purchasing...

A hearing has been scheduled before a hearing panel of the Investment Dealer Division of the New Self-Regulatory Organization of Canada (New SRO) in the matter of Donald Warren Metcalfe. The allegations are that Mr. Metcalfe engaged in fraudulent conduct with respect to loan financing and failing to cooperate with Enforcement Staff who were conducting an investigation. The Notice of Hearing and Statement of Allegations which sets out the allegations is available at: Gary Man Kin Ng and Donald Warren Metcalfe – Notice of Hearing and Statement of Allegations A motion has also been scheduled in this matter on March 9, 2023. The...

Executive Summary New SRO is amending its Investment Dealer and Partially Consolidated Rules (IDPC Rules) related to margin requirements for securities loan, repurchase agreements, and reverse repurchase agreements with term risk (the Amendments). The objective of the Amendments is to correct an error in the plain language drafting of the term risk margin requirements on financing transactions in IDPC Rule 5900. The Amendments will be effective immediately. 1. Summary of the Amendments The Amendments: replace language referring to the ‘security involved in loan agreement’ with ‘Government of Canada debt security’, and clarify the margin rate rule reference. 1.1 Replace language We replaced the phrase ‘the security involved...

New Self-Regulatory Organization of Canada (New SRO) is warning Canadian investors not to be fooled by fraudsters falsely claiming to be associated with Citigroup, and using a false URL, 1citigroup.ca. In communications with investors, an individual posing as Alex Foster claims to be associated with Citigroup (1citigroup.ca). 1citigroup.ca is not affiliated with Citigroup Global Markets Canada inc. or any other Citigroup Inc. affiliate. Always confirm the person calling or emailing you is the person they claim to be. Oftentimes, the name given is a registered individual's name and the fraud is only revealed by a bogus email domain or phone...

This webcast highlights common topics and best practices for effective supervision. It is aimed at providing you with knowledge of what our Business Conduct Compliance and Trading Conduct Compliance teams look for regarding compliance supervision during examinations. Topics covered include remote supervision; record keeping and inquiries; tiered supervision and the overall structure of supervision within the firm; a high-level look at UMIR supervision requirements; delegation; systems and tools. The webcast panelists are: Gloria Law, Manager, Business Conduct Saran Forbes, Senior Business Conduct Compliance Examiner Gabby Rizzello, Business Conduct Compliance Examiner William Xu, Manager, Trading Conduct Compliance Please note this webcast was...

Following a sanctions hearing held on October 28, 2022, a hearing panel of the Investment Dealer Division of the New Self-Regulatory Organization of Canada (New SRO) imposed the following sanctions on Jeffrey Rutledge: pay a fine of $2,468,974, calculated as follows: $2,192,784 (including $1,942,784 in lieu of disgorgement) for the misappropriation from the joint accounts of his clients RS and SS; $226,190 (including $176,190 in lieu of disgorgement) for the misappropriation from the account of client SB; and $50,000 for failing to cooperate with IIROC Staff; be permanently barred from approval in any capacity; and be permanently barred from...

An application was heard before a hearing panel of the Investment Dealer Division of the New Self-Regulatory Organization of Canada (the “Corporation”) in the matter of Brant Securities Limited. The application was for an order expelling Brant Securities Limited from the Corporation and terminating its rights and privileges of membership. The application was heard on February 23, 2023. The hearing panel ordered that: Brant Securities Limited shall cease all dealings with clients and cease representing to any other persons that it is a member of the Corporation or provides investment services effective immediately; Pursuant to subsection 8212(4)(v) of the Investment Dealer...

In the case of Philippe Bélisle, the Financial Markets Administrative Tribunal (TMF) has reviewed the decision rendered on October 12, 2021 by a hearing panel of the Canadian Trade Regulatory Organization (IIROC), now the New Self-Regulatory Organization of Canada (new SRO). The TMF rendered its decision on December 22, 2022 and issued the following orders: Partially WELCOMES Philippe Bélisle's request for review; CONFIRMS the decision rendered by IIROC on May 17, 2021; REVERSES the Sanctions Decision rendered by IIROC on October 12, 2021; AND RENDER the decision that should have been rendered with regard to the 3 counts brought against Philippe Bélisle by IIROC: PROHIBIT Philippe...