The Investment Industry Regulatory Organization of Canada (IIROC) handed down fewer sanctions against individuals last year, but ordered heftier penalties for firms, according to its latest enforcement statistics.
IIROC statistics for 2013 show that the number of disciplinary decisions against both firms and individuals declined last year. The self-regulatory organization (SRO) handed down 45 decisions against individuals, down from 58 the previous year; and, rendered 12 decisions against firms, compared with 17 the previous year.
The overall size of sanctions ordered against individuals also dropped significantly from $12.1 million in 2012 to $5.3 million last year. A big drop in fines drove the decline, with total fines reaching $4.4 million in 2013, down from $11.4 million in 2012; although that year’s total was exceptionally high compared to previous years.
Conversely, total fines levied against firms jumped from $1.4 million in 2012 to $2.2 million last year. Including costs and disgorgement orders, total monetary sanctions against firms rose to $2.6 million in 2013, up from $1.7 million in the prior year.
In terms of other sorts of sanctions, eight individuals were permanently banned in 2013, down from 10 in 2012; there were also 25 suspensions ordered during the year, down from 34 in 2012. As for firms, there were three permanent suspensions ordered in 2013, and two terminations.
IIROC stats also show the that number of events reported to ComSet declined to 1,745 in 2013 from just under 2,000 in 2012. Client complaints ticked down to just over 1,300, from more than 1,500 the previous year; the number of civil claims and criminal charges was also down from the previous year. However, the number of internal disciplinary actions rose from 17 in 2012 to 29 in 2013.
In terms of new cases opened during the year, suitability remains the top issue, accounting for more than 200 cases, which is down a bit from the previous year. Unauthorized trading ranks second with 88 cases. There were 560 new cases opened during the year, in total.