National investment group gets more powers to collect fines on P.E.I.

A national group that regulates investment dealers now has more powers to disciplinemembers who break the rules in P.E.I.

The Investment Industry Regulatory Organization of Canada (IIROC) can now file enforcement orders to collect fines directly through P.E.I.'s Supreme Court.

Group can garnish wages, seize assets

An enforcement order allowsIIROCto garnish wages and seize assets.

"With this new legal authority,IIROCcan now go directly through the Supreme Court of P.E.I. to enforce fine collection without needing authorization from the P.E.I. Superintendent of Securities," IIROCpresident and CEO AndrewKriegler, wrote in anemailto CBC."This increased efficiency will save time without drawing on public resources."

IIROC fines investment advisersand firms that break rules of conduct and ethics. Most cases involve those who recommend unsuitable investments which result in financial losses for investors. Many of those cases involve seniors, according to IIROC.

P.E.I. is the third province, after Alberta and Quebec, to grant IIROC this power. IIROCsays in those provinces, it has had more success collecting fines.

Nationally only 20% of fines collected

In 2016IIROC handed out more than $4.5 million in fines against firms and individuals, but collected less than 20 per cent of those fines.

According to IIROC, John Phillip Watts is the only member on P.E.I. who has outstanding fines. IIROC says he has not paid any of $115,000 in fines and $20,000 in costs ordered in April 2016. IIROC filed an enforcement order with the courts on P.E.I. in November.

• National group seeks to collect $115K from P.E.I. investment adviser
• John Phillip Watts, investment advisor, ordered to pay $115K in fines

"Prince Edward Island is pleased to collaborate withIIROCto enhance investor protection to help to foster confidence in our capital markets and economy," said P.E.I.'sSuperintendent of Securities, SteveDowling, inanews release issued by IIROC.

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