Currently the regulator's powers are limited compared to six other provinces
The government of Ontario has proposed new legislation which includes enhancing the powers of the Canadian Investment Regulatory Organization (CIRO).
If passed, it will make Ontario the seventh province to give CIRO the full enforcement toolkit, already in place in Alberta, Newfoundland and Labrador, New Brunswick, Nova Scotia, Prince Edward Island, and Quebec.
It would mean CIRO’s powers in Ontario would include:
- the ability to enforce fine collection through the courts against individuals fined by CIRO disciplinary panels
- authority to collect and present evidence during investigations and at disciplinary hearings
- protection from malicious lawsuits while acting in good faith to carry out its public interest mandate to protect investors.
Provincial finance minister Peter Bethlenfalvy has laid out several plans to protect Ontarians from the impact of economic uncertainty and tariffs including transforming the province into the most competitive place to invest, create, and do jobs in the G7.
Among measures the minister has proposed in Bill 24, Plan to Protect Ontario Act (Budget Measures) 2025, is amending the Securities Act to enhance CIRO’s powers by empowering its chief executive to appoint employees of CIRO to conduct investigations.
These employees would have investigative powers under law and would be bound by newly created rules around confidentiality of information relating to investigations. There would also be statutory immunity for current and former CIRO directors, officers and employees.
There will also be higher fine limits available.
Currently breaking the Securities Act’s rules about trading commodity futures or company directors or officers allowing or ignoring this kind of illegal activity can mean a maximum fine from a court of $5 million. Bill 24 proposed doubling this to $10 million.
Currently, the Capital Markets Tribunal may make an order requiring a person or company who has not complied with Ontario commodity futures law to pay an administrative penalty of not more than $1 million for each failure to comply. Paragraph 9 of subsection 60 (1) of the Act is amended to increase that amount to not more than $5 million for each failure to comply.
CIRO says that the amendments will help it hold wrongdoers accountable for their actions and send a strong message of deterrence to potential offenders.
"We applaud Minister Peter Bethlenfalvy and the Government of Ontario for their leadership in sending this important message - if you harm investors in Ontario, you will be held accountable for your actions," said CIRO President and CEO Andrew J. Kriegler. "As a public interest regulator, these new enforcement tools will enable us to provide stronger protection to investors."
