The Investment Industry Regulatory Organization of Canada (IIROC) is proposing revisions to one of its tranches of proposed plain language rules, dropping the sections that give its district councils’ the power to suspend or terminate a dealer.
In a notice setting out the changes, IIROC says that in response to comments on its proposed plain language rules that were originally published back in February 2011 it has revisited the necessity of adopting the sections that deal with district councils’ power to suspend and terminate a dealer.
While these powers exist in the current rules, in practice, they have always been carried out by a hearing panel, it notes. And, IIROC says that it believes that “in all circumstances a hearing panel should decide whether to suspend or terminate the membership of a dealer.”
As a result, it’s proposing to drop those sections from the new plain language rules, in order to “eliminate unnecessary rule provisions and redundancy in the IIROC rules, and to ensure that IIROC rules reflect current IIROC practices.”
The proposed revisions will be incorporated into the proposed plain language rule re-write project, it says, which will not be implemented until the entire set of the plain language rules has been published for an additional public comment period and approved by the Canadian Securities Administrators (CSA).
Comments are sought on the proposed revisions within 60 days.