IIROC Finalizes Guidance On Underwriting Due Diligence

The Investment Industry Regulatory Organization of Canada recently published itsfinal guidance on underwriting due diligence (the "Guidance"). Being IIROC's first ever codification of this nature, the publication of the Guidance represents an opportunity for underwriters to review internal practices in light of IIROC's expectations. As we discussed when IIROC's draft guidance were published for comment, while the intention is to codify common practices, the guidance may represent a departure from what some may consider to be the market standard. This is an issue that may be of particular relevance given the role of due diligence in demonstrating that an underwriter has fulfilled its statutory obligations in respect of prospectus offerings.