Ontario’s insurance regulator has signed an agreement with Canada’s brokerage industry watchdog to guarantee that investment professionals facing discipline by one regulator are also reviewed by the other.
The agreement struck between the Financial Services Commission of Ontario and the Investment Industry Regulatory Organization of Canada is aimed at mollifying fears that with many financial advisers in Ontario licensed to sell a variety of products, an advisor facing disciplinary action or who has even been banned for improper behaviour in one branch of financial services can continue operating in another.
“Investors must be protected from disciplined individuals who might seek to avoid sanctions and continue working in another part of the financial services industry,” said IIROC chief executive officer Andrew Kriegler.
Lines between the industry sectors have been increasingly blurred, says interim CEO and superintendent of financial services in Ontario, Brian Mills, with more professionals spanning several areas of financial services. It was this trend that necessitates co-operation and co-ordination between regulators in the name of consumer protection, he said.
According to the FSCO and IIROC, their memorandum of understanding means a disciplinary action undertaken by one regulator will trigger a review by the other. Any such review is to consider the “suitability” of the individual to work in the field.
