The investment dealers association of Canada’s enforcement record: Are penalties “grossly inadequate”?

Abstract

The IDA (since 2008, the Investment Industry Regulatory Organization of Canada (IIROC)) is the national self-regulatory organization (SRO) that is responsible for policing investment dealers and Member firms that trade in the debt and equity markets in Canada (Jenah 2008: 1-4). IIROC sets educational requirements, ethical standards, and compliance rules that govern the conduct of its registered members and Member firms (Jenah, 2007: 2, 8, & 15). Registered members and Member firms must comply with these rules, or face penalties that range from a written reprimand to permanent bans from participating in the market (see IIROC, 2008: 4). IIROC’s nine District Councils across Canada are responsible for enforcing these rules (IIROC, 2010: para. 1).