IIROC Advances Two New Forms Of Disciplinary Action

In a recent Notice (the 2019 Proposals), the Investment Industry Regulatory Organization of Canada (IIROC) announced that it proposes to move forward with two new disciplinary programs (the Programs) that were first published for public comment last year:

1. A Minor Contravention Program (MCP) that would impose fines on approved individuals ($5,000 per contravention) for minor offenses that might not have triggered any substantive legal action by IIROC Staff in the past.
2. An Early Resolution Offer (ERO) process that would permit IIROC Staff to make formal offers of settlement earlier in the enforcement process, at the time, or shortly after, a formal investigation is commenced. The ERO would constitute IIROC Staff's "best offer" to settle by granting a reduction of 30% on the sanctions Staff would otherwise seek in a settlement agreement at a later stage.