Investment Dealers Association of Canada and the Investment Industry Regulatory Organization of Canada -- s. 21.4 and s. 19 of the CFA
IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED (the OSA) AND IN THE MATTER OF THE COMMODITY FUTURES ACT, R.S.O. 1990, CHAPTER C.20, AS AMENDED (the CFA) AND IN THE MATTER OF THE INVESTMENT DEALERS ASSOCIATION OF CANADA (IDA) AND IN THE MATTER OF THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC)
VOLUNTARY SURRENDER ORDER (Section 21.4 of the Act and section 19 of the CFA)
WHEREAS the Ontario Securities Commission (the Commission) issued orders on June 15, 1984 recognizing the Investment Dealers Association (IDA) as a self-regulatory organization pursuant to section 15 [now 16] of the CFA (CFA Order) and on October 27, 1995 recognizing the IDA as a self-regulatory organization pursuant to section 21.1 of the OSA (OSA Order);
AND WHEREAS effective June 1, 2008 (the Effective Date), the IDA combined its operations (the Combination) with Market Regulation Services Inc. (RS) thereby becoming the Investment Industry Regulatory Organization of Canada (IIROC). The Commission issued an order dated May 16, 2008 and effective on June 1, 2008 recognizing IIROC as a self-regulatory organization pursuant to subsection 21.1(1) of the Act and subsection 16(1) of the CFA.
AND WHEREAS in 2008, the Commission varied and restated the OSA Order in order to reflect that, subsequent to the Effective Date, the IDA would continue to operate as a self-regulatory organization for a period of time, contemplated to be 5 years, to perform limited complaint handling, investigations and enforcement functions;
AND WHEREAS the above referenced period of time has now lapsed and no circumstances have been brought to the Commission's attention that would warrant a continuation of the regulatory authority of the IDA as a recognized self-regulatory organization;
AND WHEREAS the IDA has now applied to the Commission by written submission dated February 25, 2014, for the Commission to accept the voluntary surrender of the recognition of the IDA as a self-regulatory organization under the CFA Order and the OSA Order, as varied and restated;
AND WHEREAS IIROC, on behalf of the IDA, has made the following representations:
1. The continued recognition of the IDA after the Combination was intended to provide added assurance regarding its continued authority over persons subject to its authority and their conduct occurring prior to the Effective Date;
2. An IIROC staff review of the outstanding and potential investigation and enforcement activity involving conduct prior to the Effective Date was carried out, and it was determined that the risk of a possible challenge to its authority is low, thus there is no longer a material need for such added assurance;
3. IIROC has no knowledge of any threatened, pending or actual claims against the IDA; and
4. IIROC has previously agreed to discharge, perform and fulfill all of the obligations and liabilities of the IDA arising before, on or after the Effective Date, and undertakes to continue to do so following the Commission's acceptance of the voluntary surrender of the recognition of the IDA as a self-regulatory organization.
AND WHEREAS the Commission has determined that acceptance of the voluntary surrender of the recognition of the IDA as a self-regulatory organization would not be prejudicial to the public interest;
THE COMMISSION hereby accepts, pursuant to section 21.4 of the Act and section 19 of the CFA, the voluntary surrender of the recognition of the IDA as a self-regulatory organization.
Dated March 11, 2014 and effective April 17, 2014.