1. Discussion of Amendments

1. Analysis

The original proposal to consolidate certain enforcement, procedural, examination and approval rules was published for comment in March 2012 (the Original Notice).1
 Following extensive comments, IIROC staff prepared responses to those comments and made certain changes to the rules which were re-published for comment in November 2013 (the Republication Notice).2
 
In response to the Republication Notice, IIROC staff received one public comment letter from the Investment Industry Association of Canada (IIAC). In addition, we invited all commenters (from both the Original Notice and the Republication Notice) to participate in a “roundtable” meeting in March 2014. 

The Canadian Securities Administrators (CSA) and the Board approved the Consolidated Rules and they were implemented on September 1, 2016 (the Implementation Date),3
 except Rule 8300 which became effective in June 2016.

As it is now the one-year anniversary of the implementation of the Consolidated Rules, we are proposing to implement amendments to 8 sections of the Consolidated Rules. Set out below is a brief description of each of the amendments:

In addition, set out below is a brief description of the amendment in UMIR:

The purpose of the Amendments is to clarify the intentions in drafting the Consolidated Rules and UMIR, ensure that the language used is consistent with current practice, and make minor necessary changes of an editorial nature. 

Classification of the Amendments

We have classified the Amendments as “housekeeping” because they:

• do not represent a material change to IIROC rules 
• have no material impact on investors, issuers, Dealer Members or the capital markets in Canada as they: 
  • make amendments to correct typographical and grammatical mistakes and inaccurate cross-referencing
  • make necessary changes of an editorial nature (such as standardization of terminology) 
  • are reasonably necessary to ensure the Consolidated Rules and UMIR conform to applicable securities legislation, statutory or legal requirements.

1. Impacts of the Amendments

We do not expect the Amendments to impose any burden or constraint on competition or innovation that is not necessary or appropriate to support IIROC’s regulatory objectives. Likewise, we do not expect they will impose costs or restrictions on the activities of market participants that are disproportionate to the regulatory objectives.

Technological implications 

The Amendments will not have an impact on Dealer Members’ systems, or on the systems of their service providers or other stakeholders. 

1. Policy Development Process

1. Regulatory purpose

The Amendments maintain rules that are necessary or appropriate to govern and regulate all aspects of IIROC’s functions and responsibilities as a self-regulatory entity.

In deciding on the Amendments, IIROC identified a need to ensure the Consolidated Rules and UMIR are up to date by correcting typographical, grammatical and cross-referencing errors as well as ensuring that the language used is consistent with what is currently in practice.

The Amendments are housekeeping in nature and not detrimental to the best interests of the capital markets. As a result, the Board has classified the Amendments as a “Housekeeping Rule” that is not contrary to the public interest.

1. Appendices

Appendix A - Blackline comparison of the amendments to the current Consolidated Rules

Appendix B - Clean copy of the amendments to the current Consolidated Rules

Appendix C - Blackline comparison of the amendments to the current UMIR

Appendix D - Clean copy of the amendments to the current UMIR

• 1See Notice 12-0104– Consolidation of IIROC Enforcement, Procedural, Examination and Approval Rules.
• 2See Notice 13-0275 –Republication of Proposed Consolidation of IIROC Enforcement, Procedural, Examination and Approval Rules and Attachment E to Notice 13-0275.
• 3See Notice 16-0122 –Implementation of the consolidated IIROC Enforcement, Examination and Approval Rules.