The Investment Dealers Association is getting tough with repeat offenders who continually violate its early warning by-law.

The IDA says that its member regulation staff have been incurring significant regulation costs dealing with some members who find themselves repeatedly in the early warning category, due to insufficient capital, liquidity or profitability. “Member regulation staff are of the opinion that it is unfair to the majority to underwrite those firms who repeatedly or continuously breach [the by-law],” it says.

The IDA has decided that firms that frequently find themselves in violation of the by-law, will be charged the regulation cost of these violations. Specifically, members who trigger EW a minimum of four times in any 12 month period, will be charged the regulation cost, at the discretion of the vice president, financial compliance

“Members are advised that it is unacceptable to be in EW on an ongoing basis. In addition to the extra cost that will be charged, serious business restrictions will be considered for members who frequently violate the Early Warning triggers,” the IDA says.