What is the primary role of the Investment Industry Regulatory Organization of Canada (IIROC)?

• A. To provide investment advice to individuals
• B. To oversee investment dealers and trading activity
• C. To manage mutual fund distribution
• D. To regulate insurance companies in Canada

Answer: (B)

The primary role of the Investment Industry Regulatory Organization of Canada (IIROC) is to oversee investment dealers and trading activity. This involves ensuring that investment firms and their representatives comply with high standards of conduct and practice in order to protect investors and maintain the integrity of the Canadian securities markets. IIROC's regulatory framework helps to monitor trading practices, enforce compliance with regulations, and promote fair, transparent, and efficient markets.

In contrast, providing investment advice is typically the responsibility of investment professionals and firms, rather than a regulatory body's mandate. Managing mutual fund distribution falls under different regulatory bodies focusing specifically on mutual funds rather than the broad oversight provided by IIROC. Additionally, regulating insurance companies pertains to a separate sector within the financial industry and is handled by different regulators that focus on the insurance industry rather than investment dealers.