Personal Investor: Investors want stricter penalties for rogue dealers, survey finds
Canadians want the investment industry to crack down on dealers who deal in bad advice.
That’s the conclusion of a new survey by the Strategic Council for the Investment Industry Regulatory Organization of Canada (IIROC), as it attempts to streamline the settlement of disciplinary cases and divert minor rule violations away from lengthy hearings.
It found more than half of respondents believe the industry regulator should name and shame firms or individuals who breach the rules by publishing their names.
It also found most respondents wanted the self-regulating body to boost fines for minor rule violations from $2,500 for individuals and $5,000 for firms.
Here are some of the other findings:
- 76 per cent support an early settlement program to encourage resolution of disciplinary cases before they reach an IIROC disciplinary hearing panel;
- 70 to 85 per cent say serious violations, such as those that cause significant harm to investors or demonstrate a history of disciplinary issues, should result in a formal hearing before an IIROC panel.
IIROC oversees all investment dealers and their trading activity in Canada’s debt and equity markets. Its objective is to enforce regulatory rules without having to turn to pubic securities regulators like the Ontario Securities Commission.