HomeRegulatorsInvestment Industry Regulatory Organization of Canada (IIROC)

Investment Industry Regulatory Organization of Canada (IIROC)

On this page, you will learn about the IIROC (Investment Industry Regulatory Organization of Canada) and how they help keep the Canadian economy healthy. We cover topics such as their responsibilities, importance and how they can provide confidence to money transfer customers when sending money to Canada.

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What Is the IIROC?

The IIROC is classed as a non-profit organization and a national self-regulatory organization. They were established through the merger of Market Regulation Services Inc. and the Investment Dealers Association of Canada. They primarily oversee the trading activity and investments in the Canadian debt and equity markets.

Formed in 2008, its headquarters are in Toronto, Ontario, Canada, and its yearly budget is CAD 101.237 million based on 2020 data. The CEO is Andrew J. Kriegler.

The IIROC gets its direction from the Canadian Securities Administers, an umbrella organization of Canada’s provincial and territorial securities regulators. The IIROC has quasi-jurisdictional powers as it sets the regulatory and investment industry standards. However, the organization has received some criticism that it is not an effective regulator.

What Is the IIROC Responsible for?

Now let us turn our attention to the responsibilities of the IIROC. This section will help you better understand the importance of the regulatory body. Therefore, you can have more confidence in the Canadian financial markets when transferring funds.

  • Sets and enforces rules: the IIROC creates and enforces rules relating to proficiency, financial and business conduct of around 174 Canadian investment firms, which include 31,000 registered individuals. These individuals can include consumers of money transfer companies.

  • Training and monitoring: the individuals registered with the IIROC will undergo a screening and training process. Furthermore, they are monitored and tested regularly to ensure they can meet the high business and financial standards set by the regulator. When members do not meet the criteria, they will need to train or even be fined if they break the rules.

  • Monitors markets: the IIROC has the role of monitoring the debt and equity markets in Canada. They ensure that all market participants are trading fairly and following the rules. In exceptional circumstances, the IIROC can halt trading stocks.

  • Enforcement: the IIROC’s enforcement staff has the role of investigating, identifying and prosecuting misconduct relating to the regulatory rules. Disciplinary proceedings might be initiated, leading to suspensions, fines, permanent bans and even termination. These disciplinary proceedings are included for individuals and firms.

The vision of the IIROC is:

  • To create a culture that attracts the best employees in the industry

  • Holding the title of an industry-leading regulator

  • Gaining the trust of stakeholders by being respected and valued

  • Improving the efficiency of Canadian regulations

  • Reducing wrongdoing and offering more confidence through robust tools

What Is the Importance of the IIROC?

This section covers why the IIROC does important work in the Canadian economy. These significant factors give you peace of mind when sending money to Canada for investment purposes.

  • Protects investors: the IIROC holds brokers and the firms they work for accountable for the investment actions they take on behalf of investors. This means they help ensure that the members of the IIROC have the correct training to take advantage of the best trading practices.

  • Promotes trust: the IIROC fosters confidence in the Canadian economy by ensuring that investment markets are running correctly and fair trade is practiced. Otherwise, it would be the Wild West as firms and individuals would engage in questionable practices.

  • Improves the competency of traders: since the IIROC provides training directly, it means they play a significant role in enhancing the trading performance of brokers. As a result, investors can have confidence in using IIROC-certified traders when choosing a firm to invest their money.

  • Removes bad actors: the IIROC has the authority to issue fines, bans and can terminate the operation of bad actors. This cleans up the Canadian financial markets from the type of brokers that can harm investors.

  • Economic growth: ultimately, more confidence in the Canadian investment markets means that more people will invest and higher sums of money. This contributes to the development of the Canadian economy.

An example of the IIROC in action is when they sanctioned Nancy Fairclough for admitting to acting as Power of Attorney for a client from whom she accepted a monetary gift. The agreement included Ms. FairClough paying $5,000, and the Enforcement Staff agreed to a 30% reduction in the severity of the sanctions. The deal came via an Early Resolution Offer, which promotes the efficient resolution of cases by finalizing them in the early stages.

IIROC Regulations

This section delves deeper into the specifics of what the IIROC is responsible for and where they end. Therefore, money transfer customers can better understand how the organization can serve them when interacting with Canadian financial markets.

  • Regulations: the IIROC provides clear rules and regulations that indicate how members should conduct themselves while operating in the investment markets. They are classed as a self-regulatory body, which means that they have some degree of regulatory authority. However, the government has not handed down their ability to enforce the rules. Overall, the IIROC operates under the auspices and orders of the Canadian Securities Administrators.

  • Crimes: the IIROC deals with crimes and rule-breaking relating to firms and individuals using the investment markets. This can include trading in bad faith or manipulating the markets unfairly.

  • Industries: the IIROC is limited to the debt and equity market. The specific scope of their task ensures they are in the best position to hold the participants of the markets accountable.

  • Accountability: the IIROC is accountable to the Canadian Securities Administrators and investors who want to use brokers to make investments in the market.

What Regions Does the IIROC Cover?

The IIROC covers the whole of Canada and is limited to the debt and equity markets. All firms and brokers operating out of Canada must become members of the IIROC to ensure they comply with the rules and laws relating to using the markets.

When Might You Encounter the IIROC?

You may encounter the IIROC if you want to train as a broker. You will need to get certification and ensure that you have completed the correct training programs to participate in the debt and equity markets.

Also, you may want to contact the IIROC if you feel there has been wrongdoing with your trades or if you wish to become a whistleblower. They have a separate department for the latter that the general public can use to uncover bad actors in the markets.

Can the IIROC Make New Rules?

The IIROC is a self-regulatory body with authority to make new rules about how it carries out its duties. They regularly update the regulations to ensure that the modern challenges of the markets are met. This might be because of technological advancements or loopholes in the system that are getting abused by brokers.

How to Contact the IIROC?

In this section, you will learn about contact details if you want to get in touch with the IIROC. In addition, you may want to get clarification on how to spot safe brokers when sending money to Canada.

  • Form: in the top right-hand side of the official website, a blue button can be used to “Ask a question or make a complaint.”

  • Email:

  • Phone: toll-free Canada/US - 1 877-442-4322 and international - 800-5555-2323

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Bottom Line

Overall, the IIROC plays a vital role in ensuring Canada's debt, and securities markets run smoothly. This ensures that the investors are not taken advantage of by brokers and execute trades fairly so that advantage is not achieved. This should provide confidence to money transfer customers looking to invest in the Canadian financial markets.

We encourage you to read other guides on our website to learn more about the money transfer process. For example, you can start with Send Money To Canada and Send Money from the United States to Canada. This means you can find money transfer companies that offer low fees, competitive FX rates and fast processing times.

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Martynas Pupkevicius
Martynas Pupkevicius
Martynas is a seasoned freelance writer that has written on a broad range of topics over his 10 year career. He enjoys diving into the research and sharing what he's learned with readers.