The Investment Dealers Association of Canada is proposing amendments that would do away with its appeal panel. It is also seeking to ensure it maintains jurisdiction over former members for five years after they leave the industry.

According to the OSC Bulletin, the IDA is seeking to adopt changes that would cause appeals of its disciplinary hearings to be directed to the securities commissions or a provincial court, rather than to an appeal panel.

“The proposed amendment would result in the IDA’s board members being able to continue to focus on their corporate governance responsibilities. The amendment would also ensure that respondents are able to continue to appeal decisions without undue delay,” it says. “This would result in greater strength, fairness and efficiency in the capital markets, in which investors will have greater confidence. Moreover, the IDA’s appeals process will be more consistent with the processes used by other Canadian SROs.”

It is also proposing amendments that would confirm the IDA’s jurisdiction to prosecute former registrants for conduct that occurred while they were registered. The changes would ensure that it has jurisdiction to initiate a disciplinary case for up to five years after a member has left the industry. It would also ensure that there is sufficient time for parties to resolve issues, rather than allowing for proceedings to be arbitrarily ruled out of time, it says.

“Recently, there have been judicial challenges to the IDA’s continuing jurisdiction over former registrants, on the basis that the true intent and meaning of By-law 20.7(1), is that if an enforcement proceeding is not completed five years from the date on which the former registrant ceased to be a registrant, then the IDA loses its authority to discipline the former registrant for the acts committed while the person was registered,” it notes.

“This interpretation is patently incorrect, however, to resolve any uncertainties, the IDA seeks to make clearer the language in this provision to unequivocally state that the IDA continues to have jurisdiction over former registrants so long as an enforcement proceeding has commenced no later than five years from the date on which the former member or approved person ceased to be registered,” it adds. “In other words, By-law 20.7(1) does not provide a time limit for the IDA to complete an enforcement proceeding, but rather, it is the limitation period for initiating enforcement proceedings.”