The Canadian Investment Regulatory Organization (CIRO) announced the upcoming launch of a Disgorgement Distribution Program that, in certain cases, will allow funds collected under a CIRO disgorgement order following a finding of registrant misconduct to be distributed to investors who have been financially harmed. The program comes into effect on April 1, 2026. Disgorgement is a monetary sanction imposed by CIRO hearing panels requiring a wrongdoer to repay funds, gains, or other value obtained through misconduct. CIRO said investors previously could not receive payments through CIRO for losses even when disgorgement was ordered, and the new program introduces eligibility criteria, governance controls, and oversight mechanisms to govern distributions. CIRO also noted that investors will continue to rely on existing recovery avenues, including firm-level complaints, the Ombudsman for Banking Services and Investments, arbitration, and civil claims. CIRO has published further information on the program, including eligibility criteria, process details, and frequently asked questions.
Canadian Investment Regulatory Organization 2026-03-19
Canadian Investment Regulatory Organization announces Disgorgement Distribution Program to distribute disgorged funds to harmed investors from 1 April 2026
The Canadian Investment Regulatory Organization (CIRO) will launch a Disgorgement Distribution Program on April 1, 2026, allowing funds from disgorgement orders to be distributed to financially harmed investors. The program introduces eligibility criteria, governance controls, and oversight mechanisms, while investors can still pursue existing recovery avenues. Further details, including eligibility and process information, have been published by CIRO.