Setting A Strong Foundation: IIROC Publishes New Guidance For Underwriter Due Diligence

The Investment Industry Regulatory Organization of Canada (IIROC) believes  that its Dealer Members play an important role as one of the gatekeepers to the Canadian capital markets. Dealer Members and individuals performing due diligence investigations on their behalf should take an approach to due diligence that goes beyond the avoidance of liability and mitigation of risk to Dealer Members. IIROC's recently proposed guidance (the Guidance) for its Dealer Members in the context of public securities offerings is an effort to promote consistency and enhanced standards in the underwriting due diligence process.

In developing the Guidance, IIROC established an industry advisory committee to solicit input on the current and best practices for underwriting due diligence. The committee was comprised of senior industry representatives from 21 Dealer Members and reflected a cross-section of large, medium and small firms with regional representation across Canada. In addition,