The Investment Industry Regulatory Organization of Canada (IIROC) has signed a memorandum of understanding (MOU) with the Canada Deposit Insurance Corp. (CDIC) that will allow the two organizations to co-operate and better protect depositors and investors when a CDIC member institution or a connected IIROC-regulated dealer firm encounters serious financial difficulties.
“Investors across Canada will benefit from the early warning, co-operation and co-ordinated efforts of two organizations working together to plan and oversee the orderly resolution of a financial emergency at an investment firm,” says Andrew Kriegler, IIROC’s president and CEO, in a statement. “This enhanced co-operation will not only help protect investors’ assets and deposits but will also promote confidence and financial stability in Canada.”
“In order to protect the deposits of Canadians in a rapidly evolving financial services sector, we need to have a full picture of the business of our member institutions,” adds Michèle Bourque, president and CEO of the CDIC, in a statement. “In the unlikely event of a failure, this agreement will ensure that we are able to act quickly and effectively to co-ordinate the orderly resolution of a financial firm.”
This MOU follows similar arrangements the CDIC has established with other deposit insurers and financial regulators to improve co-operation, information sharing, and resolution planning. The CDIC will continue to work with domestic and international counterparts to strengthen relationships and coordination for deposit protection.
IIROC, for its part, continues to pursue agreements to improve the regulatory system. Most recently, IIROC announced an MOU with the Insurance Council of British Columbia in June. It previously announced agreements with the Financial Services Commission of Ontario in March and the Chambre de la sécurité financière in Quebec in November 2015.
IIROC has more than a dozen agreements with Canadian and international regulatory organizations.
Photo copyright: solerf/123RF