CIRO publishes harmonized Sanction Guidelines and Enforcement Staff Policy Statements 

December 21, 2023, (Toronto, Ontario) – The Canadian Investment Regulatory Organization (CIRO) has published new harmonized Sanction Guidelines, marking an important step towards unifying and strengthening Canada’s financial regulatory framework. This version replaces all previous Sanction Guidelines of both the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada.

The Sanction Guidelines aim to reinforce consistency, fairness, and transparency in the sanctioning process. They are designed to guide CIRO Enforcement staff and hearing panels in negotiating settlement agreements and in imposing sanctions in disciplinary proceedings, while allowing flexibility based on the specifics of each case.

In conjunction with the Sanction Guidelines, CIRO has introduced Enforcement Staff Policy Statements to encourage proactive cooperation, early resolution of cases and set out Enforcement Staff’s approach to certain issues that commonly arise in disciplinary hearings. These include:

• Credit for Cooperation: Recognizing proactive and exceptional assistance during investigations as mitigating factors in sanctions.
• Early Resolution Offers: Offering a 30 per cent reduction in proposed sanctions for early case settlements, facilitating quicker resolutions and benefiting the market and investors.
• Suspensions and Permanent Bars: Clarifying that Enforcement Staff will generally not seek suspensions greater than five (5) years unless the misconduct is so serious as to merit a permanent bar.
• Internal Discipline by a Dealer Member: Addressing how Enforcement Staff will approach relevant internal disciplinary measures imposed by a Dealer Member against Regulated Persons.

“These initiatives are another further step towards becoming one unified CIRO, demonstrating our commitment to upholding the highest standards of practice and business conduct among its Dealer Members and regulated individuals,” said Elsa Renzella, CIRO’s Senior Vice-President, Enforcement and Registration. “By introducing these sanctions and enforcement policies, CIRO reaffirms its commitment to enhancing investor protection, strengthening market integrity, and ensuring efficient, competitive capital markets in Canada.”

For more information about the Sanction Guidelines and Enforcement Staff Policy Statements, visit ciro.ca.

For media inquiries, please contact:

Joanna Nicholson  
Canadian Investment Regulatory Organization  
jnicholson@ciro.ca

For investor inquiries, please contact your local securities regulator.