This report deals with the issue of
account supervision by IIROC registered dealers. We use information observed
and documented over the past five years, reports /case studies from the Ombudsman
for Banking Services and Investments, independent research, CSA / IIROC reports
on compliance, enforcement and compensation practices, IIROC Hearing panel decisions,
IIROC Bulletins and feedback from hundreds of Fund OBSERVER readers. In
addition, we talked to dealing Reps, former industry participants and lawyers
representing clients. The analysis indicates fundamental shortcomings in
regulations/rules, supervisory support systems, supervisory cogency, dealer
audit practice efficacy, complaint handling practices and IIROC rules/
compliance/enforcement.
We draw attention to root causes and the inherent
failure mechanisms. In effect, we have a weak supervisory framework designed
for individual brokerage transactions trying to function in an advisory
environment whose primary purpose is retirement income security for Canadians.
We recommend numerous reforms/ improvements for consideration by IIROC, the CSA
and by elected officials. For Report click here
