Investment Dealer Division
Complaints
Sources of Complaints
| Source |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Public |
155 |
114 |
238 |
194 |
164 |
| ComSet |
1306 |
885 |
1110 |
1036 |
881 |
| Internal (from other CIRO departments) |
38 |
26 |
24 |
22 |
36 |
| Other SROs and Commissions |
50 |
20 |
15 |
19 |
20 |
| Other (media, Dealer Members and whistleblowers) |
14 |
8 |
9 |
12 |
8 |
| Total |
1563 |
1053 |
1396 |
1283 |
1109 |
Top Complaints Reviewed by Case Assessment
| Allegation |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Unsuitable Investments |
26% |
20% |
30% |
29% |
24% |
| Unauthorized and discretionary trading |
19% |
27% |
19% |
16% |
12% |
| Misrepresentation |
14% |
12% |
13% |
8% |
3% |
| Supervision |
18% |
9% |
13% |
7% |
7% |
Investigations
Investigations Completed
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Number of Investigations completed |
91 |
76 |
113 |
112 |
127 |
| Percentage of files referred to Prosecutions |
41% |
41% |
25% |
35% |
38% |
Investigations Completed - by Province
| Province |
FY23 |
FY22 |
| Alberta |
13 |
7 |
| British Columbia |
15 |
17 |
| Manitoba |
0 |
0 |
| New Brunswick |
0 |
1 |
| Newfoundland & Labrador |
0 |
0 |
| Nova Scotia |
0 |
1 |
| Ontario |
49 |
40 |
| Quebec |
10 |
9 |
| Saskatchewan |
4 |
1 |
| Total |
91 |
76 |
Investigations Completed – by Source (% breakdown)
| Source |
FY23 |
# out of 91 |
FY22 |
# out of 76 |
| ComSet |
16.4% |
15 |
11.8% |
9 |
| Enforcement |
6.6% |
6 |
9.2% |
7 |
| Public |
17.6% |
16 |
19.7% |
15 |
| CIRO Compliance Depts |
11% |
10 |
14.5% |
11 |
| Registration |
14.3% |
13 |
3.9% |
3 |
| Trade Review and Analysis |
2.2% |
2 |
1.3% |
1 |
| Securities Commissions |
5.5% |
5 |
10.5% |
8 |
| Surveillance (Debt & Equity, Gatekeeper) |
18.7% |
17 |
19.7% |
15 |
| Other |
7.7% |
7 |
9.2% |
7 |
Enforcement Proceedings
A proceeding is concluded when a CIRO hearing panel, securities commission or court has made a final decision that includes the imposition of sanctions. Decisions under review by a securities commission or court are not included.
Commenced by Type
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Notice of Hearing (Disciplinary Hearing) |
5 |
10 |
11 |
14 |
10 |
| Settlement Hearing |
13 |
14 |
15 |
21 |
26 |
| Protective Order or Temporary Order |
5 |
2 |
2 |
2 |
3 |
| Total |
23 |
26 |
28 |
37 |
39 |
Concluded Proceedings by Province
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Alberta |
4 |
3 |
3 |
1 |
3 |
| British Columbia |
6 |
8 |
4 |
3 |
10 |
| Manitoba |
0 |
0 |
0 |
3 |
1 |
| Ontario |
14 |
14 |
14 |
24 |
22 |
| New Brunswick |
1 |
0 |
1 |
0 |
0 |
| Newfoundland |
1 |
1 |
0 |
0 |
0 |
| Nova Scotia |
1 |
0 |
0 |
0 |
0 |
| Prince Edward Island |
0 |
0 |
0 |
0 |
0 |
| Quebec |
2 |
4 |
7 |
6 |
7 |
| Saskatchewan |
2 |
1 |
0 |
0 |
3 |
| Total |
31 |
31 |
29 |
37 |
46 |
Concluded Proceedings by Respondent Type
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Individuals |
20 |
23 |
21 |
27 |
36 |
| Firms |
11 |
8 |
8 |
10 |
10 |
| Total |
31 |
31 |
29 |
37 |
46 |
Concluded Proceedings by Hearing Type
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Settlement |
17 |
22 |
21 |
31 |
36 |
| Disciplinary (including Protective or Temporary order) |
14 |
9 |
8 |
6 |
10 |
| Total |
31 |
31 |
29 |
37 |
46 |
Completed Proceedings – by Regulatory Violation
| Individuals |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Complaint Handling |
0 |
1 |
1 |
1 |
0 |
| Discretionary trading |
3 |
4 |
5 |
3 |
5 |
| Fail to Cooperate |
2 |
5 |
0 |
1 |
3 |
| Forgery |
0 |
2 |
0 |
1 |
0 |
| Fraud |
1 |
0 |
0 |
0 |
0 |
| Gatekeeper |
2 |
1 |
2 |
2 |
0 |
| Inappropriate personal financial dealings |
3 |
5 |
3 |
2 |
10 |
| Inadequate books and records |
0 |
0 |
0 |
0 |
1 |
| Misappropriation |
3 |
1 |
0 |
0 |
0 |
| Misrepresentation |
1 |
1 |
1 |
2 |
1 |
| Manipulative & deceptive trading |
0 |
1 |
1 |
1 |
2 |
| Off-book transactions |
2 |
2 |
0 |
0 |
1 |
| Outside business activities |
3 |
4 |
2 |
0 |
3 |
| Suitability/Due diligence/Handling of client accounts |
4 |
10 |
8 |
11 |
14 |
| Supervision |
0 |
0 |
2 |
2 |
3 |
| Trading conflict of interest |
0 |
1 |
0 |
0 |
0 |
| Trading without appropriate registration |
0 |
0 |
0 |
1 |
1 |
| Unauthorized trading |
3 |
0 |
1 |
3 |
3 |
| Undisclosed conflict of interest |
0 |
2 |
0 |
0 |
2 |
| Other |
5 |
2 |
2 |
5 |
3 |
| Firms |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Capital deficiency |
0 |
1 |
0 |
1 |
0 |
| Failure to handle client accounts |
0 |
1 |
0 |
1 |
0 |
| Inadequate books and records |
0 |
1 |
0 |
1 |
1 |
| Internal controls |
4 |
4 |
1 |
1 |
2 |
| Protective order/Termination |
4 |
1 |
2 |
1 |
2 |
| Supervision |
3 |
5 |
5 |
2 |
7 |
| Other |
1 |
0 |
0 |
4 |
1 |
Sanctions Imposed
| Firms |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Decisions |
11 |
8 |
8 |
10 |
10 |
| Fines |
$924,000 |
$1,370,500 |
$1,110,000 |
$5,875,000 |
$860,000 |
| Costs |
$117,500 |
$170,000 |
$105,000 |
$93,497 |
$55,500 |
| Disgorgement |
- |
$0 |
$0 |
$16,242 |
$0 |
| Total |
$1,041,500 |
$1,540,500 |
$1,215,000 |
$5,984,739 |
$915,500 |
| Permanent Suspension |
0 |
1 |
1 |
1 |
0 |
| Termination |
4 |
1 |
2 |
1 |
2 |
| Individuals |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Decisions |
20 |
23 |
21 |
27 |
36 |
| Fines |
$9,175,224 |
$2,119,77 |
$766,500 |
$937,500 |
$2,207,500 |
| Costs |
$518,000 |
$499,022 |
$121,500 |
$127,000 |
$359,000 |
| Disgorgement |
$4,992,246 |
$211,736.87 |
$88,851 |
$31,423 |
$237,360 |
| Total |
$14,685,470 |
$2,830,530 |
$976,851 |
$1,095,923 |
$2,803,860 |
| Permanent Suspension |
11 |
12 |
13 |
13 |
17 |
| Permanent bar |
3 |
4 |
2 |
3 |
3 |
| Conditions |
11 |
9 |
12 |
19 |
23 |
Collection Rate
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Individuals |
4%* |
29% |
62% |
79% |
41% |
| Firms |
100% |
100% |
100% |
100% |
100% |
* In three cases concluded in FY23, fines, disgorgement, and costs totaling over $13 million were imposed that are unlikely to be collected and significantly impacted the collection rate for FY23 (see cases regarding Gary Ng, Marc St. Pierre, and Jeffrey Rutledge in Appendix A).
The percentage rates represent the monetary sanctions collected to date for that fiscal year. The rate does not include monetary sanctions imposed for cases that are under appeal. The rate for a given year may increase over time as CIRO continues to collect monetary sanctions after the year in which the sanctions were imposed.
CIRO typically collects 100% of the amounts imposed on firms; there are circumstances where firms may not pay, such as insolvency issues or where a suspension is imposed. Firms that do not pay are no longer members of CIRO in good standing.
Mutual Fund Dealers Division
Complaints
Sources of Complaints
| Source |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Public |
150 |
99 |
136 |
120 |
136 |
| METS |
2382 |
1497 |
1506 |
1363 |
1582 |
| Internal (from other CIRO departments) |
2 |
3 |
10 |
0 |
14 |
| Other SROs and Commissions |
3 |
5 |
32 |
6 |
10 |
| Other (media, Dealer Members and whistleblowers) |
4 |
31 |
18 |
23 |
15 |
| Total |
2541 |
1635 |
1702 |
1512 |
1757 |
Top Complaints Reviewed by Case Assessment
| Allegation |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Suitability – Investments |
31% |
15% |
14% |
7% |
10% |
| Business Standards |
16% |
21% |
19% |
10% |
9% |
| Unauthorized/Discretionary Trading |
8% |
7% |
8% |
6% |
4% |
| Transfer of Accounts |
8% |
6% |
8% |
3% |
3% |
Investigations
Investigations Completed
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Number of Investigations completed |
96 |
133 |
151 |
144 |
162 |
| Percentage of files referred to Prosecutions |
46% |
53% |
65% |
60% |
57% |
Investigations Completed - by Province
| Province |
FY23 |
FY22 |
| Alberta |
14 |
16 |
| British Columbia |
12 |
19 |
| Manitoba |
2 |
9 |
| New Brunswick |
1 |
3 |
| Newfoundland & Labrador |
1 |
0 |
| Nova Scotia |
5 |
3 |
| Ontario |
57 |
81 |
| Quebec |
0 |
0 |
| Saskatchewan |
4 |
1 |
| Yukon |
0 |
1 |
| Total |
96 |
133 |
Investigations Completed – by Source (% breakdown)
| Source |
FY23 |
# out of 96 |
FY22 |
# out of 133 |
| METS |
79% |
76 |
73% |
97 |
| Public |
8% |
7 |
8% |
10 |
| CIRO Compliance Depts |
4% |
4 |
5% |
7 |
| Securities Commissions |
3% |
3 |
5% |
7 |
| Other |
6% |
6 |
9% |
12 |
Enforcement Proceedings
A proceeding is concluded when a CIRO hearing panel, securities commission or court has made a final decision that includes the imposition of sanctions. Decisions under review by a securities commission or court are not included.
Commenced by Type
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Notice of Hearing (Disciplinary Hearing) |
31 |
47 |
35 |
32 |
49 |
| Settlement Hearing |
37 |
40 |
44 |
37 |
71 |
| Total |
68 |
87 |
79 |
69 |
120 |
Concluded Proceedings by Province
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Alberta |
2 |
9 |
10 |
10 |
17 |
| British Columbia |
14 |
15 |
7 |
17 |
14 |
| Manitoba |
9 |
5 |
2 |
3 |
3 |
| Ontario |
47 |
40 |
52 |
46 |
100 |
| New Brunswick |
1 |
2 |
2 |
0 |
1 |
| Newfoundland |
0 |
1 |
1 |
2 |
1 |
| Nova Scotia |
1 |
4 |
3 |
3 |
1 |
| Prince Edward Island |
0 |
0 |
0 |
1 |
2 |
| Quebec |
0 |
0 |
1 |
0 |
0 |
| Saskatchewan |
3 |
2 |
0 |
1 |
5 |
| Total |
77 |
78 |
78 |
83 |
144 |
Concluded Proceedings by Respondent Type
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Individuals |
71 |
75 |
74 |
81 |
134 |
| Firms |
6 |
3 |
4 |
2 |
10 |
| Total |
77 |
78 |
78 |
83 |
144 |
Concluded Proceedings by Hearing Type
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Settlement |
42 |
49 |
57 |
63 |
114 |
| Disciplinary |
35 |
29 |
21 |
20 |
30 |
| Total |
77 |
78 |
78 |
83 |
144 |
Completed Proceedings – by Regulatory Violation
| Individuals |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Business Standards |
6 |
0 |
0 |
1 |
1 |
| Falsification / Misrepresentation |
1 |
1 |
1 |
2 |
1 |
| Fail to Cooperate |
4 |
4 |
2 |
4 |
5 |
| Conflict of Interest |
4 |
2 |
2 |
0 |
5 |
| Active Signature Falsification |
11 |
12 |
11 |
9 |
22 |
| Active Outside Registration Status |
2 |
2 |
2 |
1 |
4 |
| Pre-Signed Forms |
18 |
25 |
30 |
36 |
46 |
| Personal Financial Dealings |
6 |
7 |
6 |
8 |
6 |
| Suitability - Leveraging |
2 |
0 |
0 |
1 |
0 |
| Forgery / Fraud / Theft / Misappropriation / Misapplication |
6 |
5 |
6 |
6 |
8 |
| Unauthorized / Discretionary Trading |
3 |
4 |
3 |
3 |
13 |
| Stealth Advising |
1 |
4 |
1 |
0 |
1 |
| KYC Documentation Deficiency |
1 |
1 |
0 |
0 |
1 |
| Supervision |
3 |
2 |
2 |
1 |
4 |
| Confidentiality / Privacy |
1 |
1 |
1 |
0 |
0 |
| Referral Arrangements |
1 |
0 |
0 |
0 |
4 |
| Know Your Product |
1 |
0 |
0 |
0 |
0 |
| Outside Activity |
0 |
2 |
4 |
1 |
6 |
| Suitability - Investments |
0 |
3 |
2 |
2 |
5 |
| Handling of Funds |
0 |
0 |
1 |
0 |
0 |
| Policies and Procedures |
0 |
0 |
0 |
4 |
0 |
| Conduct Unbecoming |
0 |
0 |
0 |
2 |
1 |
| Conduct Unbecoming |
0 |
0 |
0 |
0 |
1 |
| Firms |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Supervision |
4 |
0 |
2 |
2 |
10 |
| Financial Requirements |
0 |
1 |
1 |
0 |
0 |
| Complaint Procedure |
0 |
0 |
1 |
0 |
0 |
| Conflict of Interest |
0 |
2 |
0 |
0 |
0 |
| Know Your Product |
1 |
0 |
0 |
0 |
0 |
| Confidentiality / Privacy |
1 |
0 |
0 |
0 |
0 |
Sanctions Imposed
| Firms |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Decisions |
6 |
3 |
4 |
2 |
10 |
| Fines |
$1,240,000 |
$890,000 |
$220,000 |
$400,000 |
$490,000 |
| Costs |
$122,500 |
$50,000 |
$35,000 |
$65,000 |
$87,500 |
| Total |
$1,362,500 |
$940,000 |
$255,000 |
$465,000 |
$577,500 |
| Suspension |
0 |
0 |
0 |
0 |
1 |
| Permanent ban |
0 |
0 |
0 |
0 |
0 |
| Terms and Conditions |
0 |
1 |
0 |
0 |
0 |
| Individuals |
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Decisions |
71 |
75 |
74 |
81 |
134 |
| Fines |
$7,391,210 |
$10,732,977 |
$3,231,022 |
$9,430,444 |
$8,198,292 |
| Costs |
$659,663 |
$987,826 |
$318,963 |
$838,051 |
$578,375 |
| Total |
$8,050,873 |
$11,720,803 |
$3,549,985 |
$10,268,495 |
$8,776,667 |
| Suspension |
29 |
31 |
22 |
28 |
50 |
| Permanent bar |
14 |
16 |
10 |
15 |
40 |
| Terms and Conditions |
17 |
12 |
1 |
4 |
7 |
Collection Rate
|
FY23 |
FY22 |
FY21 |
FY20 |
FY19 |
| Individuals |
21%* |
37% |
29% |
20% |
25% |
| Firms |
100% |
100% |
100% |
100% |
100% |
The percentage rates represent the monetary sanctions collected to date for that fiscal year. The rate does not include monetary sanctions imposed for cases that are under appeal. The rate for a given year may increase over time as CIRO continues to collect monetary sanctions after the year in which the sanctions were imposed.
CIRO typically collects 100% of the amounts imposed on firms; there are circumstances where firms may not pay, such as insolvency issues or where a suspension is imposed. Firms that do not pay are no longer members of CIRO in good standing.
