CIRO's Powers Bolstered: Bill C-24 Brings Tougher Penalties, Enhanced Enforcement
The Canadian Investment Regulatory Organization (CIRO) has seen its powers bolstered and penalties increased following the enactment of Bill C-24 on June 5, 2025. The new legislation expands the CIRO's law enforcement tools and raises fines for regulatory contraventions and quasi-criminal offenses in the stock market today.
Previously operating as a self-regulatory organization (SRO) since January 1, 2023, the CIRO now has enhanced authority to compel evidence production during investigations. This change, along with increased maximum fines of $5 million for regulatory contraventions and $10 million for quasi-criminal offenses in the stock market, aims to strengthen market regulation.
The amendments also grant legislative immunity to CIRO administrators, directors, employees, and officers acting in good faith. This provision encourages robust enforcement without fear of personal liability.
The new rules on discretionary trading, designed to reduce failed trades and prevent market manipulation in the stock market, are a significant step towards modernizing financial markets. These changes align with the recommendations in the final report of the Expert Panel on Financial Markets Modernization from January 2021.
The expanded powers and increased penalties could transform the CIRO's relationship with its members, shifting from a contract-based to a law-based dynamic in the stock market. The CIRO's predecessor, the Investment Industry Regulatory Organization of Canada (IIROC), had advocated for such expanded law enforcement tools. With these changes, the CIRO is better equipped to protect investors and maintain market integrity in the stock market today.
