Skip to main content

A Bay Street sign, a symbol of Canada's economic markets and where main financial institutions are located, is seen in Toronto, May 1, 2013.

MARK BLINCH/reuters

Canada's brokerage industry watchdog has signed an agreement with Ontario's insurance regulator to ensure that investment professionals who face disciplinary action by one regulator are also reviewed by the other.

The co-operation agreement between the Investment Industry Regulatory Organization of Canada and the Financial Services Commission of Ontario will address concerns that many financial advisers in Ontario are licensed to sell a variety of products, so can continue operating in one branch of financial services even when disciplined or banned by another regulator for improper behaviour.

In addition to regulating the insurance sector, FSCO also oversees loan and trust companies, credit unions, mortgage brokers and other financial industry participants. IIROC supervises people and companies that sell securities such as stocks, bonds and related investment products.

Story continues below advertisement

IIROC and FSCO said their memorandum of understanding means a disciplinary decision or action taken by one regulator will automatically trigger a review by the other regulator, including consideration of the "suitability" of the individual for approval or registration to work in the other sector.

The organizations also agreed to conduct joint investigations and share relevant documents when both regulators are investigating the same people.

"Investors must be protected from disciplined individuals who might seek to avoid sanctions and continue working in another part of the financial services industry," said IIROC chief executive officer Andrew Kriegler.

Brian Mills, interim CEO and superintendent of financial services in Ontario, said there used to be clearer lines between industry sectors, but they are becoming blurred as more people work across multiple areas of financial services. It means regulators must co-operate and co-ordinate their work to protect consumers, he said.

IIROC said it has signed similar accords with regulators in other provinces, including an accord signed in November with the Chambre de la sécurité financière in Quebec, which regulates people working in sectors such as insurance, mutual funds, financial planning, scholarship plans and group savings plans.

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

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter