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IIROC seeks comments on the concept of lower minimum capital requirements

Levelling the playing field

TORONTO, March 11, 2014 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today published for comment a concept paper to consider the possibility of establishing lower minimum capital requirements for Dealer Members with reduced risk profiles.

"IIROC is putting this proposed concept paper out for comment as we explore opportunities to create a more level playing field for IIROC-regulated firms," said IIROC President and Chief Executive Officer Susan Wolburgh Jenah.

In developing the concept paper, IIROC benchmarked its minimum capital requirements to those of other securities industry regulators in Canada and the U.S..  The paper explores the potential of lower minimum capital requirements for qualified Dealer Members, which if implemented, would more closely align IIROC's requirements to those that apply to other securities industry registrants with comparable business models.

IIROC's risk-based approach to setting minimum capital and insurance coverage requirements is integral to the proposed concept paper. Firms that might qualify for lower minimum capital requirements have reduced risk profiles because they either do not handle, or have limited access to client cash or securities.

Comments should be made in writing and delivered by July 9, 2014, 120 days from the publication of this notice.


IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

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