The Manitoba government has passed legislation that gives The Investment Industry Regulatory Organization of Canada (IIROC)  more effective tools to protect Manitoba investors, the self-regulatory organization announced on Tuesday.

Manitoba has joined Alberta, British Columbia, Ontario, Quebec and Prince Edward Island in adopting legislation that enables self-regulatory organizations to enforce fines ordered against individuals through the courts.

In addition, the amendments to the Securities Act and Commodity Futures Act provide IIROC:

  • statutory immunity, the protection against malicious lawsuits while acting in good faith to carry out its public interest mandate to protect investors; and
  • the right to appeal a decision made by an IIROC hearing panel to the Manitoba Securities Commission (MSC).

IIROC thanked the government for passing the legislation.

“This is a powerfully clear message the government is sending to rule breakers: if you abuse client trust, you will face repercussions,” says Andrew Kriegler, president and CEO of IIROC, in a statement.

“Strengthening IIROC’s authority to discipline misconduct in the investment industry is a key step taken by the Manitoba government,” adds Elizabeth Mulholland, CEO of Prosper Canada, in a statement. “This will help shield vulnerable Canadians and will also give regulators the tools they need to take strong enforcement action when rules are broken.”