IIROC Issues Proposed Guidance On Underwriting Due Diligence

On March 6, 2014, the Investment Industry Regulatory Organization of Canada ("IIROC") issued a request for comment on proposed guidance (the "Proposed Guidance") regarding due diligence conducted by underwriters on public offerings of securities in Canada. The Proposed Guidance is meant to foster consistency and enhanced standards amongst IIROC Dealer Members. The Proposed Guidance was developed to address variations and inconsistencies in due diligence and record keeping practices of Dealer Members. IIROC distilled practices and guidelines prepared by a committee of senior industry representatives, the due diligence guidelines prepared by the Investment Industry Association in 2006, and input from various other industry groups and prepared the Proposed Guidance to reflect the views of IIROC staff on due diligence matters. IIROC intends that the Proposed Guidance be simply a guide to common practices and not create a new standard of due diligence.