The Investment Industry Regulatory Organization of Canada (IIROC), Prosper Canada and CARP today praised the Government of Manitoba for introducing legislation to give IIROC more effective tools to protect Manitoba investors.
The three organizations have been advocating for additional tools in Manitoba and other jurisdictions that would provide IIROC, a national public interest regulator, with the legal authority to more effectively and consistently enforce its rules and discipline those who break them.
Minister of Finance Cameron Friesen today introduced legislative amendments to the Securities Act (Manitoba) that would grant IIROC the legal ability to enforce through the courts its fines against individuals that engage in misconduct sending a strong deterrent message to potential wrongdoers.
In addition, IIROC will also now receive protection against malicious lawsuits while acting in good faith to carry out its public interest mandate to protect investors.
IIROC exercises its oversight of Canada's investment industry and carries out regulatory responsibilities given to it under Recognition Orders from the Manitoba Securities Commission (MSC) and other provincial and territorial securities commissions across the country. With these amendments, IIROC will receive the same legal protection as the MSC.
"We thank the Minister of Finance and the Government of Manitoba for taking this important step to enhance investor protection – particularly for seniors who rely heavily on their retirement investments and represent the largest number of complaints we receive," says IIROC President and CEO, Andrew J. Kriegler. "By introducing these legislative changes, the Manitobagovernment is demonstrating it is serious about protecting investors and putting wrongdoers on notice that, if you break the rules and abuse the trust of your clients, you will pay the price and be held accountable."
"We applaud the amendments introduced by the Manitoba government, which will strengthen IIROC's authority to investigate and prosecute misconduct in the investment industry," says Prosper Canada CEO, Elizabeth Mulholland. "This is particularly important for vulnerable Canadians who are often targeted and for regulators who need tools to protect investors from financial harm and to take strong enforcement action when rules are broken."
"At CARP, we hear too many stories of seniors who've lost their entire life's savings to rogue rule-breakers who abuse their positions of financial knowledge. Even one case of misconduct is one case too many," says CARP's VP of Advocacy, Wanda Morris. "With fewer workplace pensions, lower interest rates, and increased longevity, our members' nest eggs are more important than ever. Today's changes will give IIROC more authority to demand accountability and seek justice, an important step towards greater investor protection for all Canadians."
IIROC investigates and prosecutes firms and investment advisors who breach the regulator's rules by, for example, misappropriating funds from clients, falsely endorsing client signatures and/or making unsuitable recommendations to investors, commonly seniors and vulnerable investors who suffer significant financial losses. In 2017, IIROC completed 127 investigations and 44 prosecutions with more than $4.4 million in sanctions imposed coast-to-coast.
"We greatly appreciate the support of the MSC, which shares our unwavering commitment to the protection of Manitobans," adds Kriegler. "This collaboration with our regulatory, governmental and community partners means that investors in this province can have confidence knowing they are well protected and that our capital markets operate with integrity."
A fact sheet listing the provinces where IIROC has enhanced enforcement authority is available at www.iiroc.ca.