Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The body that regulates investment dealers has abandoned plans for a new disciplinary program for minor offences, after pushback from investor advocates as well as concerns from the industry.

The Investment Industry Regulatory Organization of Canada said Thursday that it was withdrawing a proposal first made in 2018 for a “minor contravention program,” or MCP, in which individual advisers could admit to wrongdoing in matters where investors had not been harmed and pay a standard $5,000 fine, avoiding a full hearing. Advisers who admitted to the minor violation would not have had the infraction placed on their formal disciplinary record, and the public notice of the misconduct would remain anonymous.

The Canadian Foundation of Advancement of Investor Rights and the Ontario Securities Commission’s investor advisory panel expressed objections to the plan, particularly to the anonymity provisions. “How can IIROC assert this proposal is in the public interest when the public – the stakeholder group often most directly impacted by the wrongdoing – is kept unaware of each MCP sanction?” the OSC panel wrote in its letter.

Story continues below advertisement

Thursday, IIROC explicitly acknowledged those comments in its notice of withdrawal. It also noted public comments that “the criteria for pursuing a matter under the MCP as opposed to a formal disciplinary proceeding were not sufficiently clear and did not provide certainty as to its applicability,” which was suggested by trade group Investment Industry Association of Canada in its comment letter.

IIROC said it’s pulling the proposed rules “in order to fully consider and address these concerns.”

Investor advocate Ken Kivenko of Kenmar Associates said “there were valid concerns on both sides” but is sad to see it dropped. “We weren’t destructively critical; we felt they were close. I hope they resurrect it.”

IIROC said Thursday it will, however, proceed with another portion of its plan: “early resolution offers,” in which investment firms and advisers would settle certain cases earlier in the enforcement process with reduced fines and no full hearings.

IIROC is a self-regulatory organization, with industry participation, that investigates and prosecutes firms and investment advisers that breach its rules. Major infractions could include misappropriating funds from clients, falsely endorsing client signatures or making unsuitable recommendations to investors – none of which would have been subject to the minor contravention program.

Currently, disciplinary actions are resolved in a settlement or a contested hearing. IIROC hoped the two proposed programs would allow it to address matters more quickly and efficiently.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the authors of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies