Increased powers for IIROC in Quebec

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By Sébastien C. Caron, Marie-Noël Rochon and Philippe Ross

On June 14th, 2018, legislative amendments gave the Investment Industry Regulatory Organization of Canada (“IIROC”) additional powers in disciplinary matters.

The adoption of Bill 141 provides IIROC with improved legal authority to collect evidence from third parties during its investigations and enhances cooperation at disciplinary hearings. The legislative amendments also increase IIROC’s protection against lawsuits in the exercise of its oversight and regulatory role.

These increased powers come in addition to IIROC’s ability to enforce through Quebec’s courts the fines imposed against individuals convicted of misconduct. The authority to collect fines was initially given through legislative amendments in 2013, following a ruling from the Court of Appeal of Quebec in OCRCVM c. Beaudoin (2011 QCCA 2247).

The Quebec legislative amendments follow the ones Alberta made last year to strengthen IIROC’s enforcement powers. Four other provinces, namely Ontario, British-Columbia, Manitoba and Prince Edward Island, have adopted legislative amendments giving IIROC ability to resort to courts to collect the fines it imposes, and in certain cases, immunities and additional powers. IIROC is continuing discussions with the other provinces and territories to consolidate its powers from coast to coast.