IIROC

The Investment Industry Regulatory Organization or IIROC is Canada’s national self-regulating organization that oversees all Canadian investment dealers and trading on all debt and equity marketplaces in the country. In addition, the organization regulates forex brokers and trading activity.

The IIROC was created in 2008 through the combination of the Investment Dealers of Canada, an organization renamed in 1935 — previously the organization had been the Bond Dealers Section of the Toronto Board of Trade founded in 1916 — and Market Regulations Services Inc., which was formed in 2008 to conform with a ruling that requires an independent regulation service to regulate trading in all Canadian marketplaces.

The organization operates in both of Canada’s national languages, English and French and their mandate is to set high quality investment industry standards to protect investors and to strengthen market efficiency in competitive capital markets. The vision of the organization is to be known for its integrity, transparency and fair, balanced solutions.

Location and Jurisdiction

The IIROC’s primary jurisdiction in the nation of Canada and has four main offices in Vancouver, Quebec, Alberta and Ontario. The Head Office is in Toronto, Ontario and its physical location is Suite 2000, 121 King Street West, Toronto, Ontario, M5H 3T9. Their telephone is 416 364 6133, and within Canada, toll free at 1 877 442 4322. Their Fax number is 416 364 0753, also for enforcement matters only, the fax number is 416 364 2998.

The Montréal address is 5 Place Ville Marie, Suite 1550, Montréal, Quebec, H3B 2G2. The telephone number in Quebec is 514 878 2854, while the fax number is 514 878-3860, for enforcement matters only, the fax number is 514 878 6324.

In Calgary, the address is 255-5th Avenue S.W., Suite 800, Bow Valley Square 3, Calgary, Alberta, T2P 3G6. The telephone numbers to the Calgary office is 403 262-6393, and their fax number is 403 234 0861.

The Vancouver office is located at Suite 2800 – Royal Centre, 1055 West Georgia Street, Vancouver, B.C., P.O. Box 11164 V6E 3R5. The telephone number is 604 683 6222 and the fax number is 604 683 3491. For enforcement matters only the fax number is 604 683 6262.

Responsibilities

The IIROC is responsible for setting rules for investment dealers, and monitor the rules to make sure they are followed. The rules set forth by the organization involve the proficiency and qualifications of individuals and businesses to ensure that a code of conduct is followed by the companies and their registered representatives.

The agency enforces market integrity and trading activity on all of Canada’s equity exchanges and alternative trading systems. The agency monitors trading activity through their Surveillance, Trading Review and Analysis departments.

The organization is also a prudential regulator, which means that it monitors the financial soundness of its member firms, ensuring that the companies are adequately funded for the nature and volume of their business and that their client’s assets are protected in the case of the company’s insolvency.

IIROC in the News

On May 17th, 2017, the IIROC announced an extensive consultation on methods for the expansion on the use of client identifiers. The goal is primarily for protecting investors and addressing electronic trading risks, while having a minimum impact on the investment industry.

The initial proposal would require client identifiers on every order sent to a marketplace and every reportable trade of a debt security. Dealers would have to provide a Legal Entity Identifier or LEI for eligible clients or an account number for clients unable to obtain an LEI.

On June 1st, 2017, the IIROC published its 2018 Priorities, which outlined 16 key areas where the regulator for the public interest will take measures to ensure better protection to investors and promote efficient, healthy markets in Canada. The measures include the pursuit of more effective legal enforcement throughout Canada, implementing a new market surveillance system and increasing market transparency to name just a few.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.