IIROC’s Proposed Guidance On Underwriting Due Diligence

On March 6, 2014, the Investment Industry Regulatory Organization of Canada (IIROC), which is responsible for regulating Canada's stock exchanges and investment dealers, published proposed guidance for underwriters conducting due diligence in connection with a securities offering. Although IIROC indicates that the proposed guidance is not intended to create new legal obligations or modify existing ones, market participants are expected to understand and follow the proposed guidance once it is finalized.  

Proposed guidance

• The proposed guidance is based on nine principles which contemplate, among other things, that underwriters will:
• have written policies and procedures in place relating to all aspects of the underwriting process and to have effective oversight of these activities