Which is true about the responsibilities of IIROC?

• A. IIROC only governs mutual funds
• B. IIROC enforces rules for investment dealers and trading practices
• C. IIROC manages federal pension plans
• D. IIROC only provides education to investors

Answer: (B)

The statement regarding IIROC's responsibilities accurately reflects its role in enforcing rules for investment dealers and trading practices. The Investment Industry Regulatory Organization of Canada (IIROC) is primarily responsible for overseeing the operations of investment dealers, ensuring they adhere to regulatory requirements and uphold fair trading practices. This includes monitoring for compliance with laws and regulations that protect investors and maintain market integrity.

By enforcing rules, IIROC works to foster a safe and transparent environment for both investors and the financial market as a whole. This encompasses a range of activities such as conducting audits, investigating potential violations, and enforcing disciplinary measures when necessary.

Other statements do not represent IIROC’s responsibilities correctly. For instance, the claim that IIROC only governs mutual funds is inaccurate, as its jurisdiction extends far beyond just mutual funds, covering a wide array of investment products and services. The incorrect assertion about managing federal pension plans also misrepresents IIROC's role, as pension fund management falls under different regulatory bodies. Lastly, the option suggesting IIROC only provides education to investors overlooks the full scope of its regulatory and enforcement activities. While investor education is part of its mission, it is not the sole function of IIROC.