Modernizing the CIRO arbitration program
Changes to the CIRO arbitration program affect how investors resolve disputes and how dealers manage fairness, costs, and regulatory processes.
Submission – CIRO – Proposal to Modernize the CIRO Arbitration Program
Recipients
Canadian Investment Regulatory Organization (CIRO)
General Counsel’s Office
Industry segments this resource supports
- Wealth management
Summary
This is our submission to CIRO on its proposal to modernize the arbitration program. We fully endorse the Canadian Bankers Association’s (CBA) January 31, 2025, submission and highlight member support for the CBA’s recommendations. The submission emphasizes the need for fairness, efficiency, clarity, and cost transparency in the arbitration process, particularly regarding forum selection, award limits, limitation periods, and cost related measures. We encouraged CIRO to collaborate with OBSI to prevent forum shopping and to ensure that investors make informed, committed choices about dispute resolution pathways.
Why this matters: Changes to the CIRO arbitration program affect how investors resolve disputes and how dealers manage fairness, costs, and regulatory processes.
Key takeaways
- IFIC endorses the CBA’s submission in full and confirms member support for its recommendations.
- IFIC stresses that once an investor chooses a dispute resolution mechanism, they should not be able to switch forums, as doing so risks unfairness and abuse of process.
- IFIC recommends that CIRO and OBSI develop a consent or waiver mechanism to ensure investors commit to their chosen forum.
- The submission supports extending the arbitration program to mutual fund dealer clients to promote harmonization and reduce investor confusion.
- IFIC requests more detail on potential increases to dealer membership fees resulting from program modernization.
- IFIC questions the need to double the award limit to $1,000,000 without evidence and supports court adjudication for higher value claims.
- The submission supports allowing parties to consent to arbitration for claims above the current $500,000 limit.
- IFIC recommends maintaining the two year limitation period, consistent with civil standards across Canada.
- IFIC supports measures to improve access and reduce costs but asks CIRO to clarify how these measures would be funded.
- The submission highlights that arbitration success should be measured by effectiveness and quality, not case volume.
