The IDA has approved a new by-law aimed at ensuring supervised compliance with rules for the securities or commodity futures business. It requires IDA members to establish and maintain systems to supervise activities of all partners, directors, officers, registered representatives, employees and agents to ensure their compliance will all applicable regulations.

The system should include:
– establishment and enforcement of written policies and procedures to achieve
compliance;
– procedures to ensure all relevant individuals understand their duties;
– procedures to ensure that policies and procedures are amended within
a reasonable time and changes are communicated to all relevant personnel.

The IDA is requiring allocation of adequate resources to implement and enforce the policies and procedures. The new by-law also requires designation of supervisory personnel with the qualifications and authority to carry out the supervisory responsibilities.

Periodic on-site reviews of branch offices at which compliance activities are undertaken are also part of the new by-law.