Guide to Hearings

CIRO investigates and may bring enforcement proceedings against its registrants to determine whether there has been a contravention of the Rules, securities legislation, or other requirements relating to trading or advising in respect of securities, commodities contracts or derivatives.

The rules that govern enforcement proceedings are found in the Investment Dealer and Partially Consolidated Rules 8200 through 8400 for investment dealers and Rule 7 of the Mutual Fund Dealer Rules and Part B of the Rules of Procedure for mutual fund dealers. 

Where enforcement proceedings proceed electronically or in a hybrid environment (i.e., a combination of electronic and in-person appearances), further guidance can be found in the Hearing Committee Best Practices for Electronic Proceedings.

Case Center is an electronic tool used to share, present, view and refer to documents in CIRO proceedings. For guidance, please see:

• Best Practices For the Use of Case Center (June 2023)
• Case Center for Hearings – FAQs and Tips for Counsel and Self-Represented Individuals

To commence an enforcement proceeding, CIRO Enforcement Staff must serve a Notice of Hearing, which typically includes a Statement of Allegations, on a Respondent. There may be more than one Respondent named in a Notice of Hearing and Statement of Allegations. A Respondent can be an Approved Person or a Dealer Member.

The Notice of Hearing and Statement of Allegations set out, among other things, the time and date of the hearing and the allegations that will be considered by a hearing panel.

Once filed with the Hearings Office, the Notice of Hearing and Statement of Allegations are published online on CIRO’s website.

Following the first appearance and prehearing conferences, as may be required, a hearing is held to first determine whether the allegations in the Notice of Hearing and Statement of Allegations have been proven (the “Merits Hearing”). If any of the allegations are proven, then typically a second hearing is scheduled to determine the appropriate sanction (the “Sanction Hearing”).

Generally, hearings are open to the public and to the media, subject to the exceptions set out in section 8203(5) of the Investment Dealer and Partially Consolidated Rules and Rule 1.8 of the Mutual Fund Dealer Rules of Procedure.

The Hearings Office is part of CIRO but is completely independent of Enforcement. Section 8407 of the Investment Dealer and Partially Consolidated Rules describes the duties of the Hearings Office. The Hearings Office administers the hearing process and acts as the liaison between the parties in disciplinary proceedings and hearing panels.

Parties should not communicate directly with the hearing panel outside of the hearing room. Any communications between the parties and the hearing panel, which take place outside of the hearing room, should be routed through the Hearings Office.

The Hearings Office is neutral and cannot provide legal advice to any party.

The decision-makers in a hearing are referred to collectively as the hearing panel.

The Rules require that a hearing panel be made up of one public member (a legal professional), acting as a hearing panel chair, and two industry members (either active or former industry representatives). The hearing panel is therefore independent, unbiased, and must decide the matter based only on the evidence before it.

The Rules also require that, with certain exceptions, members on a hearing panel reside in the CIRO District where the hearing is taking place. There are 10 CIRO Districts.

You may choose to be represented by a lawyer. You may also choose to be represented by a paralegal or agent, where permitted by law in your province.

If you are represented by a lawyer, a paralegal or an agent, Enforcement Staff will only be permitted to communicate with you through your lawyer, paralegal or agent.

A hearing panel can impose a range of sanctions, including fines of up to $5 million per contravention, disgorgement of amounts obtained as a result of the contravention, terms and conditions on approval or membership, suspensions, and a permanent ban from the investment industry and/or marketplaces.

If you choose to retain a lawyer or a paralegal or an agent to represent you in your disciplinary proceeding, you will be required to bear those costs.

If Enforcement Staff is successful in proving any of their allegations against you at the conclusion of a hearing, under section 8214 of the Investment Dealer and Partially Consolidated Rules and section 7.4.2 of the Mutal Fund Dealer Rules, a hearing panel may order a Respondent to pay any costs incurred by or on behalf of CIRO in connection with the hearing and any investigation related to the hearing.

You may discuss a settlement of your case with Enforcement Staff at any time. A settlement will require you to admit to a contravention of the Rules and agree to a sanction.

Event if the parties agree to settle the matter, the settlement agreement must be accepted by a hearing panel. A settlement hearing will be held, where the settlement agreement will be presented to the hearing panel. The hearing panel may accept or reject the settlement agreement negotiated by the parties.

A settlement hearing is not public unless and until the hearing panel accepts the settlement agreement. If the hearing panel does not accept the settlement agreement, then neither the settlement agreement nor the hearing panel’s reasons for decision become public.

If the settlement agreement is accepted by the hearing panel, the settlement agreement, together with the hearing panel’s decision and written reasons will be published on CIRO’s website.

A Respondent to an enforcement proceeding is entitled to procedural fairness. This entitlement includes a right to know the case to be met to make full answer and defence to the allegations. In addition to being advised of the allegations that they face in the Notice of Hearing and Statement of Allegations, the Respondent is entitled to receive “disclosure” of certain information in the possession of Enforcement Staff.

After filing a written Response to the Notice of Hearing and Statement of Allegations, the Respondent will receive “disclosure” from Enforcement. Enforcement Staff must disclose all documents and things in Enforcement Staff’s possession or control that are relevant to the proceeding, with certain exceptions (i.e., privileged documents). Enforcement Staff’s disclosure obligations are set out in section 8417 of the Investment Dealer and Partially Consolidated Rules and Rule 10 of the Mutual Fund Dealer Rules of Procedure.

A pre-hearing conference is a non-public meeting between members of the hearing panel and the parties. All parties must attend a pre-hearing conference. Section 8416 of the Investment Dealer and Partially Consolidated Rules and Rule 9 of the Mutual Fund Dealer Rules of Procedure describe how to request and prepare for a pre-hearing conference and set out what can be discussed at a pre-hearing conference.

A pre-hearing conference can be used as an opportunity to discuss the settlement of a case or to set or amend a timetable for the steps to take place before a hearing is held.

Section 8203 of the Investment Dealer and Partially Consolidated Rules and Rule 13.2 of the Mutual Fund Dealer Rules of Procedure state that a hearing panel may admit or require evidence to be presented under oath or affirmation. Evidence can be the oral testimony of a witness, as well as documents or other materials such as audio and video recordings.

If you want to present evidence at the hearing, you may choose to call witnesses (including yourself). If you are calling a witness to testify, you may want to provide them with a summons. A summons is a document ordering a person to appear before a hearing panel to testify. It sets out the place, date and time of the hearing. To request a summons to be issued by a hearing panel, prepare a draft Summons to Witness (PDF) and contact the Hearings Office. There are limits on who can be summonsed in the proceedings – please see section 8421 the Investment Dealer and Partially Consolidated Rules for more details.

If you are going to call a witness(es), section 8418 of the Investment Dealer and Partially Consolidated Rules and Rule 11 of the Mutual Fund Dealer Rules of Procedure set out the requirements for witness lists (a list of the names of the witnesses you will be calling) and witness statements (a summary of what the witnesses will say at the hearing). You must send copies of your witness list and statement(s) to Enforcement Staff and to the Hearings Office. Enforcement Staff are also required to send these documents to you and the Hearings Office.

Section 8419 of the Investment Dealer and Partially Consolidated Rules and Rule 12 of the Mutual Fund Dealer Rules of Procedure set out the requirements if you wish to call an expert as a witness in your hearing.

In addition to considering what witnesses, if any, you want to call at your hearing, you should also consider what documents, if any, you wish to rely on for your defence. Section 8417 of the Investment Dealer and Partially Consolidated Rules and Rule 4.3 of the Mutual Fund Dealer Rules of Procedure set out the requirements and corresponding deadlines for each party to provide in advance, copies of all of the documents that they intend to rely on at the hearing.

Yes. A certified court reporter is present at every hearing. You may choose to order a transcript of the hearing after it is concluded.

If a hearing was held in public, any member of the public can request copies of the exhibit(s) and transcript(s) of the hearing, subject to the Policy Regarding Use, Disclosure and Redaction of Personal Information in Disciplinary and Regulatory Proceedings (PDF) and/or any order made by the hearing panel. The Hearing Record may be provided only after the completion of a hearing in which a final decision was issued by the hearing panel.

The use of recording devices inside a hearing room in any CIRO proceedings, without prior written consent, is strictly prohibited. Any request to make a visual or audio recording of a hearing should be made in writing to the Hearings Office at [email protected] at least 5 days before the day of the hearing. If the request is granted, restrictions and/or conditions may be imposed on any such recording. Any person permitted to make a visual or audio recording will also be subject to the direction of the hearing panel and shall not engage in any activity that may disrupt the proceeding.

Rule 8423 of the Investment Dealer and Partially Consolidated Rules and Rule 13.2 of the Mutual Fund Dealer Rules of Procedure set out the order in which a hearing must be conducted. Generally, the order is:

1. Enforcement Staff make an opening address,
2. The Respondent may choose to make an opening address right away, or may choose to wait,
3. Enforcement Staff present their evidence and examine their witnesses,
4. The Respondent may cross-examine each of Enforcement Staff’s witnesses,
5. The Respondent may choose to make an opening address at this time,
6. The Respondent presents their evidence and examines their witnesses,
7. Enforcement Staff may cross-examine each of the Respondent’s witnesses,
8. Enforcement Staff may present evidence in reply,
9. If the hearing panel permits, the parties may serve and file submissions in writing on the facts and legal argument,
10. Enforcement Staff may make closing submissions,
11. The Respondent may make closing submissions, and
12. Enforcement Staff may reply to any new issues raised by the Respondent.

Section 8422 of the Investment Dealer and Partially Consolidated Rules sets out the process to request an adjournment (re-scheduling) of a hearing from the hearing panel. Such requests should be made as early as possible. You must attend the hearing on the original hearing date unless the hearing panel has granted an adjournment in advance.

If you want to request an adjournment, you must contact the Hearings Office and ask to schedule a motion for an adjournment before the hearing panel. In order to bring a motion, you will need to complete the Hearing Date Request Form (PDF) and send it to the Hearings Office and to Enforcement Staff.

Enforcement Staff may ask to proceed with the hearing even if you are not there, provided that you have been properly served with the Notice of Hearing and Statement of Allegations. Sections 8415 and 8423(12) of the Investment Dealer and partially Consolidated Rules and Rule 8.4 of the Mutual Fund Dealer Rules of Procedure set out the circumstances in which a hearing panel may order that the hearing proceed in the absence of a Respondent.

A hearing panel may make a decision at the conclusion of the hearing or may reserve the decision and send it to the parties in-writing together with reasons for decision at a later date. The Hearings Office sends copies of all decisions and reasons to the parties. You should always ensure that the Hearings Office has your current contact information to receive communications about your hearing. If you are represented by a lawyer, a paralegal or an agent, the Hearings Office will send the decision to your representative.

CIRO is required to issue notices announcing hearing dates and hearing results, including reasons for decision. Hearing-related notices are posted to CIRO’s website.

Notices of Hearing, Statements of Allegations and hearing panel orders and decisions are also posted to CIRO’s website.

Yes. Hearing panel decisions can be appealed to the relevant provincial securities commission or authority. You should consult the securities legislation in your jurisdiction to determine the proper procedure to launch an appeal, a.k.a. “review”, and take note of any applicable deadlines.

Generally, there is a 30-day time limit from the date of the decision within which to initiate a review with the relevant securities commission or authority.

Parties to an enforcement proceeding under review by a securities regulatory authority and members of the public may make a request under section 8431 of the of the Investment Dealer and Partially Consolidated Rules and Rule 17 of the Mutual Fund Dealer Rules of Procedure for a copy of the Hearing Record after the completion of a hearing in which a final decision was issued by a hearing panel by submitting the Hearing Record Request Form (PDF) to the Hearings Office at [email protected].

All personal information will be redacted from the documents contained in the Hearing Record in accordance with the Policy Regarding Use, Disclosure and Redaction of Personal Information in Disciplinary and Regulatory Proceedings (PDF).

Photocopying costs and other reasonable administrative fees may apply depending on the volume of the requested record and resources required for its preparation.

Hearing forms are available on CIRO’s website under Hearing Forms, including:

• Hearing Date Request Form (PDF)
• Hearing Record Request Form (PDF)
• Affidavit Form (PDF)
• Summons to Witness Form (PDF)
• Hearing Attendance Request Form