Canadian regulators agree to share information on rule breakers

It is hoped the new agreement will provide stronger protection to Canadian investors

Canadian regulators agree to share information on rule breakers

The new agreement announced today, between the Investment Industry Regulatory Organization of Canada (IIROC) and the Life Insurance Council of Saskatchewan (LICS), will prohibit industry rule breakers from moving to the jurisdiction of a new regulator without detection. The agreement also allows the two regulators to co-ordinate joint investigations if an individual is under investigation by both groups.

As part of a Memorandum of Understanding, IIROC and LICS will share details on disciplinary proceedings and investigations including names of people refused registration or those who have had terms and conditions placed on their license.

"As a public interest regulator, it is important to ensure that rule-breakers cannot simply switch designations without unsuspecting new clients or other regulators being aware of their transgressions," said IIROC President and CEO Andrew J. Kriegler. "This agreement helps to close gaps and enables both our organizations to strengthen consumer protection."

"This is a great example of regulatory agencies working together to enhance consumer protection in our province," said Gordon Wyant, Saskatchewan Minister of Justice and Attorney General. "We applaud both IIROC and LICS for demonstrating leadership and encourage continued co-operation."

"This agreement not only provides strong consumer protection, it sends an important message in both the securities and insurance sectors, that if you are one of the few who harm clients, you will be held accountable," said Roger Sobotkiewicz, Chair and CEO of the Financial and Consumer Affairs Authority of Saskatchewan.

Related stories:
Best-interest dissenter reports compliance deficiencies
Would a national securities watchdog be unconstitutional?