BCN 2008/28 Recognition of the Investment Industry Regulatory Organization of Canada (IIROC) Notice of Approval [BCN]

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Published: 2008-05-30

Related Documents

Document
Memorandum of Understanding Regarding Oversight of Investment Industry Regulatory Organization of Canada
Summary and Responses

View Investment Industry Regulatory Organization of Canada Recognition Order
View Investment Dealers Association Variation Order
View Market Regulation Services Variation Order
View ATS Subscriber Agreement
View egX Canada Variation Order
View TSX Venture Exchange Variation Order

The Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS) have agreed to combine their regulatory activities into a single organization known as the Investment Industry Regulatory Organization of Canada (IIROC). Effective June 1, 2008, the Commission recognized IIROC as a self-regulatory body under section 24 of the Act.

The following regulators (collectively, with the Commission, the recognizing regulators) have recognized IIROC as a self-regulatory organization or self-regulatory body pursuant to applicable legislation:

  • Alberta Securities Commission
  • Autorité des marchés financiers
  • Manitoba Securities Commission
  • New Brunswick Securities Commission
  • Newfoundland and Labrador, Financial Services Regulation Division, Department of Government Services, Consumer & Commercial Affairs Branch
  • Nova Scotia Securities Commission
  • Ontario Securities Commission
  • Prince Edward Island Securities Office of the Office of the Attorney General
  • Saskatchewan Financial Services Commission

The IDA and/or RS are recognized as a self-regulatory body or self-regulatory organization pursuant to applicable legislation in certain of these jurisdictions.

On February 8, 2008, we published IIROC's application for recognition for comment (BCN 2008/08). We received three comment letters. We attach a summary of the comments and IIROC's responses.

The IIROC recognition has the following components:

  1. Recognition order with terms and conditions 
    The recognizing regulators issued orders recognizing IIROC with terms and conditions based on recognition criteria.  We attach a copy of BC's recognition order (COR 08/141).
  2. Oversight program
    The recognizing regulators established an oversight program for IIROC under a memorandum of understanding (MOU).  The MOU includes a joint rule review protocol for the review and approval of rules. We attach a copy of both documents.
  3. IIROC documents
    As part of the recognition, the recognizing regulators have approved IIROC's By-law No. 1 and Transition Rule No. 1 that adopts the existing RS and IDA rules, policies and other similar instruments, subject to incidental conforming changes made to ensure consistency, and establishes a process for hearing committees and panels. A copy of By-law No. 1, Transition Rule No. 1, the existing IDA and RS rules with the incidental changes, and the process for hearing committees and hearing panels are available on the OSC website (www.osc.gov.on.ca).
  4. Continued recognition of the IDA and RS
    IIROC applied to continue the recognition of the IDA and RS for up to five years, and to amend and restate their respective recognition orders to ensure their continuing authority over conduct prior to June 1, 2008. As part of the recognition of IIROC, we have approved the continued recognition of the IDA and RS. We attach a copy of each of the amended and restated recognition orders for the IDA and RS.
  5. Consequential amendments
    As part of the recognition of IIROC, we have approved amendments to the following documents to refer to IIROC, instead of RS:

         (a)   Order dated January 12, 2006 dealing with subscribers to an alternative trading system;

         (b)   Recognition Order of TSX Venture Exchange Inc.; and

         (c)   Recognition Order of egX Canada Inc.

    We attach copies of the amended orders.

We note that existing regulations, rules, orders, policies, notices or other instruments (Provisions) in the jurisdictions of the various Canadian Securities Administrators may refer to the IDA, RS, or both. As circumstances permit, the relevant securities regulatory authorities will be reviewing proposed amendments to their respective Provisions as necessary to reflect the combination of the IDA and RS to form IIROC. Until further notice, references to the IDA or RS in existing Provisions may be treated and interpreted as references to IIROC in the interim period.

Questions
You may refer questions to:

Mark Wang
Manager, Policy and Exemptions
Capital Markets Regulation
British Columbia Securities Commission
Tel: 604 899 6658 or 1-800-373-6393 (in BC and Alberta)
email:  mwang@bcsc.bc.ca

Doug MacKay
Manager, SRO Oversight
Capital Markets Regulation
British Columbia Securities Commission
Tel: 604 899 6609 or 1-800-373-6393 (in BC and Alberta)
email: dmackay@bcsc.bc.ca


May 30, 2008

 

Brent W. Aitken
Vice Chair

Ref: BCN 2008/08
        COR 08/141

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website atwww.bcsc.bc.ca in the section Securities Law & Policy: Policies & Instruments.