In the wake of a disciplinary panel’s reasons given in 2012 in Re Northern Securities (Northern Securities), the Investment Industry Regulatory Organization of Canada (IIROC) has issued fresh guidance on the compliance and supervision responsibilities of IIROC-regulated personnel.
According to IIROC Notice 12-0379 (Notice) issued in mid-December, 2012, compliance is not to be viewed as an isolated activity, but rather as the collective responsibility of the Ultimate Designated Person (UDP), Chief Compliance Officer (CCO), Chief Financial Officer (CFO), as well as executives, directors, management and supervisors of IIROC-regulated firms (Dealer Members). The authority and responsibilities of these parties are … Continue Reading
Under Canadian securities law, registered dealers are intended to intermediate orders between customers and marketplaces. Sophisticated marketplace participants maintain a variety of relationships with brokers, some of whom are expected to provide order-routing services rather than advice. These sophisticated participants generate large volumes of orders to buy and sell securities and are concerned with limiting costs and delays in conveying orders to organized marketplaces. Accordingly, accessing marketplaces by direct electronic access (DEA) allows sophisticated marketplace participants, such as institutional traders, to effect their complex trading strategies more efficiently.… Continue Reading