The Investment Industry Regulatory Organization of Canada (IIROC) is launching a mediation program for those facing disciplinary action, the self-regulatory organization announced on Monday.
IROC’s enforcement department will be introducing the program effective immediately.
The new program will give both firms and individuals that find are the subject of a disciplinary proceeding a process to help resolve the case more quickly. The program will use independent mediators, paid by both sides, to “facilitate the settlement of IIROC’s disciplinary cases or any specific issues arising during the course of a disciplinary proceeding,” IIROC says in a notice announcing the program.
Mediation provides a tool to help resolve cases, or particular issues, more quickly, notice adds.
“It is conducted on a confidential basis that allows the parties to engage in full and candid negotiations through a neutral mediator that will assist the parties in reaching a mutually agreeable resolution that may not otherwise be reached between the parties,” the IIROC notice says.
The use of mediation is voluntary, and both sides must agree to its use in a particular case. They also must agree on the mediator that will handle the case, and enter into a standard mediation agreement that sets out terms of the process.
If a settlement agreement is produced through mediation, it will still need to approved by an IIROC hearing panel before it can be finalized.
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