Best IIROC Regulated Forex Brokers 2019
IIROC Regulated Brokers Comparison Table
Introduction to IIROC Regulation
The Investment Industry Regulatory organization of Canada is the major body that is charged with the responsibility of oversight and regulation of all activities related to investing and trading in Canada. This also includes regulation of companies that deal in activities related to debt and equity. IIROC is a self-regulated body and it came into existence in mid-2008 by the coming together of two key industry players; the Market Regulation Services Inc. (RS) and the Investment Dealers Association of Canada (IDA). IIROC mandate is defined by the Canadian Securities Administrators (CSA)
IIROC is responsible for coming up with the necessary legal framework under which investment advisory firms are meant to operate. This involves actual creation, amendment and enforcing of laws in the Canadian Securities and trading industry. Their enforcement of this framework promotes integrity and confidence within the industry and ensures that there is a fair and competitive playing field for all stakeholders. Their other major responsibility is to protect the rights of investors.
How IIROC Regulation Protects You
IIROC has employed an array of surveillance systems that monitor trading activities real-time such that they are able to receive alerts based on whether or not specific predetermined rules have been violated. This allows IIROC to mitigate any risk that the investor might be exposed to in the market. In the event that a firm is suspected to have breached some laws IIROC is at liberty to launch investigations against the said firm. Depending on the outcome of these investigations IIROC may forward their findings to a hearing panel which will in turn make a decision that will determine how the firm will proceed from there. Fines are also collectable by IIROC based on assessment of damages.
In some cases IIROC might appoint a monitor to oversee the firm’s activities at a lower level, conducting random checks to make sure that they continue operating within the confines of the law and the investors still remain protected. Before a firm is admitted into IIROC membership, they must satisfy an array of prerequisites to prove to the board that they are indeed able and willing to serve their clients effectively over the long term.
Guidelines for IIROC Regulated Brokers
Canadian firms are subject to a rulebook that keeps them in check. Among these guidelines include the fact that companies in this industry must not conduct their business in a way that would violate public interests. They must act in a way that will not lead to the diminishing of public interest to get involved in the securities market. The firms regulated by IIROC are in turn charged with the responsibility of making sure that their employees and directors also follow the regulations to the letter. Where issues of investigations and enforcement their legal mandated arises, the firm in question is required to cater for costs as directed by IIROC. Failure to comply with regulations, fines and directives issued by IIROC could lead to temporary or permanent revocation of membership which ultimately translates into losing the right to lawfully carry out business in Canada.