IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED (the Act) AND IN THE MATTER OF MARKET REGULATION SERVICES INC. (RS) AND IN THE MATTER OF THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC)
VOLUNTARY SURRENDER ORDER (Section 21.4 of the Act)
WHEREAS the Ontario Securities Commission (the Commission) issued an order on January 29, 2002, recognizing Market Regulation Services Inc. (RS) as a self-regulatory organization pursuant to section 21.1 of the Act (the Order);
AND WHEREAS effective June 1, 2008 (the Effective Date), RS combined its operations (the Combination) with the Investment Dealers Association of Canada (IDA) thereby becoming the Investment Industry Regulatory Organization of Canada (IIROC). The Commission issued an order dated May 16, 2008 and effective on June 1, 2008 recognizing IIROC as a self-regulatory organization pursuant to subsection 21.1(1) of the Act and subsection 16(1) of the Commodity Futures Act.
AND WHEREAS in 2008, the Commission to varied and restated the Order in order to reflect that, subsequent to the Effective Date, RS would continue to operate as a self-regulatory organization for a period of time, contemplated to be 5 years, to perform limited complaint handling, investigations and enforcement functions;
AND WHEREAS the above referenced period of time has now lapsed and no circumstances have been brought to the Commission's attention that would warrant a continuation of the regulatory authority of RS as a recognized self-regulatory organization;
AND WHEREAS RS has now applied to the Commission by written submission dated February 25, 2014, for the Commission to accept the voluntary surrender of the recognition of the RS as a self-regulatory organization under the Order, as varied and restated;
AND WHEREAS IIROC, on behalf of RS, has made the following representations:
1. The continued recognition of RS after the Combination was intended to provide added assurance regarding its continued authority over persons subject to its authority and their conduct occurring prior to the Effective Date;
2. An IIROC staff review of the outstanding and potential investigation and enforcement activity involving conduct prior to the Effective Date was carried out, and it was determined that the risk of a possible challenge to its authority is low, thus there is no longer a material need for such added assurance;
3. IIROC has no knowledge of any threatened, pending or actual claims against RS; and
4. IIROC has previously agreed to discharge, perform and fulfill all of the obligations and liabilities of RS arising before, on or after the Effective Date, and undertakes to continue to do so following the Commission's acceptance of the voluntary surrender of the recognition of RS as a self-regulatory organization.
AND WHEREAS the Commission has determined that acceptance of the voluntary surrender of the recognition of RS as a self-regulatory organization would not be prejudicial to the public interest;
THE COMMISSION hereby accepts, pursuant to section 21.4 of the Act, the voluntary surrender of the recognition of RS as a self-regulatory organization.
Dated March 11, 2014 and effective April 17, 2014.