Investors
How the regulators can help
The OSC regulates Ontario’s capital markets. We provide protection to investors from unfair, improper or fraudulent practices and work to foster fair and efficient capital markets and confidence in their integrity.
We review complaints about possible violations of securities law, such as allegations of illegal insider trading and misleading disclosure by public companies. We have the authority to impose sanctions on individuals and companies that breach Ontario securities laws. Sanctions may include reprimands, fines, suspensions or bars from the securities industry.
The Investment Industry Regulatory Organiation of Canada (IIROC) and Mutual Fund Dealers Association of Canada (MFDA) are recognized as self-regulatory organizations under Ontario securities law. IIROC was created in 2008 through the consolidation of the Investment Dealers of Canada (IDA) and Market Regulation Services Inc. (RS).
The IIROC and MFDA regulate the activities of their member firms. They set rules for the standards of practice and operations of their members, such as “know your client” and “suitability” rules. These rules require members to act in your best interest and recommend suitable investments based on your investment objectives, risk tolerance, and other information they know about you and your financial situation.
They will also investigate complaints about their members. If a member did not conduct business with you consistent with their rules and by-laws, the IIROC or MFDA may impose penalties in the form of reprimands, fines, suspensions, and/or expulsion.
IIROC also provides independent regulation of Canadian equity marketplaces, such as the Toronto Stock Exchange and the TSX Venture Exchange. IIROC monitors trades to ensure they comply with trading rules.
Regulators can investigate complaints about misconduct and possible breaches of Ontario securities law. Only very rarely are regulators able to get money back for investors as part of a regulatory enforcement action. We can, however, help you understand your options for any kind of complaint.
