|
THE SECURITIES ACT |
) |
Order No. 6904 |
|
Subsection 31.3(1) |
) |
|
|
|
) |
|
|
THE COMMODITY FUTURES ACT |
) |
April 9, 2014 |
|
Subsection 19(1) |
) |
|
THE INVESTMENT DEALERS ASSOCIATION OF CANADA
WHEREAS:
(A) The Manitoba Securities Commission (the “Commission”) issued an order on September 24, 2004 (“Order No. 4577”), recognizing the Investment Dealers Association of Canada (“IDA”) as a self-regulatory organization pursuant to paragraph 31.1(1) of The Securities Act (the “Act”) and subsection 14(1) of The Commodity Futures Act (the “CFA”).
(B) Effective June 1, 2008 (the Effective Date), IDA combined its operations (the “Combination”) with Market Regulation Services Inc. (“RS”) thereby becoming the Investment Industry Regulatory Organization of Canada (“IIROC”). The Commission issued an order dated May 29, 2008 and effective on June 1, 2008 recognizing IIROC as a self-regulatory organization pursuant to subsection 31.1(1) of the Act and subsection 14(1) of the CFA.
(C) At the time of the Combination, it was contemplated that the existence of IDA and RS would be continued for a period of five years in order to reflect that, subsequent to the Effective Date, for limited complaint handling, investigations and disciplinary actions, the IDA would continue to regulate and maintain its authority over persons subject to its authority (collectively, Persons) prior to the Effective Date for conduct occurring prior to the Effective Date.
(D) The above referenced period of time has now lapsed and no circumstances have been brought to the Commission’s attention that would warrant a continuation of the regulatory authority of IDA; and IDA has now applied to the Commission to cancel the recognition granted in Order No. 4577 under the Act and under the CFA by written submission dated February 25, 2014;
(E) IDA has made the following representations:
1. The continued recognition of IDA after the Combination was intended to provide added assurance regarding its continued authority over Persons and their conduct occurring prior to the Effective date of the Combination;
2. IIROC, on behalf of the IDA, has carried out a staff review of the outstanding and potential investigation and enforcement activity involving conduct prior to the Effective Date of the Combination, and has determined that the risk of a possible challenge to its authority is low, thus there is no longer a material need for such added assurance; and
3. IIROC has no knowledge of any threatened, pending or actual claims against the IDA.
(F) The Commission is of the opinion that it would not be prejudicial to the public interest to grant the order requested.
IT IS ORDERED:
1. THAT, under subsection 31.3(1) of the Act and subsection 19(1) of the CFA, the recognition of the Investment Dealers Association of Canada as a self-regulatory organization is cancelled.
2. THAT, this order comes into effect on April 17, 2014.
BY ORDER OF THE COMMISSION
Acting Director