Industry

Headnote

Application under section 21.4 of the Securities Act (Ontario) and under section 19 of the Commodity Futures Act (Ontario) for Commission approval of the voluntary surrender of the recognition orders of the Investment Dealers Association of Canada and Market Regulation Services Inc.

Applicable Legislative Provisions

Securities Act, R.S.O. 1990, c. S.5, as am., s. 21.4.

Commodity Futures Act, R.S.O. 1990, c. C.20, as am., s. 19.

INVESTMENT DEALERS ASSOCIATION OF CANADA (IDA) AND MARKET REGULATION SERVICES INC. (RS) VOLUNTARY SURRENDER OF IDA AND RS RECOGNITION ORDERS

NOTICE OF COMMISSION APPROVAL

On March 11, 2014, the Commission accepted the voluntary surrender of the recognition of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS) as self-regulatory organizations (SROs), effective April 17, 2014.

On June 1, 2008, the IDA and RS combined their regulatory activities (the Combination) into a single organization known as the Investment Industry Regulatory Organization of Canada (IIROC). On that date, IIROC was recognized as an SRO by the Ontario Securities Commission and other provincial securities regulators. Whereas IIROC agreed to perform all investigation and enforcement functions of the IDA and RS as part of its recognition, the Commission also varied and restated the recognition of the IDA and RS at that time. It was contemplated that the recognition of the IDA and RS would continue for a period of approximately 5 years, to facilitate ongoing or new investigations and enforcement activity involving pre-Combination activity of persons subject to the authority of the IDA and/or RS. The IDA and RS thus remained in existence, with limited investigations and enforcement functions. Upon the lapsing of the contemplated 5-year period, IIROC, on behalf of the IDA and RS, requested that the Commission accept the voluntary surrender of the IDA and RS recognition orders, on the basis that no circumstances warrant a continuation of the regulatory authority of those entities. The Commission has accepted the voluntary surrender of the recognition orders for the IDA and RS, and is of the view that such surrenders are not prejudicial to the public interest.

A copy of each of the orders approving the voluntary surrender of the recognition orders for the IDA and RS can be found under chapter 2 of this Bulletin.