IIROC Publishes Proposed Guidance On Underwriting Due Diligence

Earlier today, the Investment Industry Regulatory Organization of Canada published a request for comments in regards to proposed guidance respecting underwriting due diligence. Noting that IIROC dealers play an important role as gatekeepers to the Canadian capital markets, IIROC's stated purpose in developing the proposed guidance is to promote consistency and enhance standards among its Dealer Members.  

While intended to codify "common practices and suggestions" the proposed guidance may represent a departure from what some Dealer Members consider as the current market standard. In developing the proposed guidance, IIROC notes that its process began by soliciting input on current practices from an industry advisory committee composed of senior industry representatives from a cross-section of firms in terms of size and regional representation. However, while IIROC engaged in this and various other consultations, the proposed guidance has ultimately been prepared by