CIRO Launches Program to Return Funds to Harmed Investors

CIRO News Releases

Published April 1st, 2026

Detected March 19th, 2026

Summary

The Canadian Investment Regulatory Organization (CIRO) is launching a Disgorgement Distribution Program effective April 1, 2026. This program will allow CIRO to distribute funds collected from registrant misconduct disgorgement orders directly to investors who have suffered financial harm, enhancing investor protection and deterrence.

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What changed

The Canadian Investment Regulatory Organization (CIRO) has announced the upcoming launch of its Disgorgement Distribution Program, effective April 1, 2026. This new program allows CIRO to distribute funds collected through disgorgement orders, which are monetary sanctions requiring wrongdoers to repay gains from misconduct, directly to investors who have suffered financial harm as a result of registrant misconduct. This initiative aims to strengthen deterrence, improve regulatory outcomes, and enhance investor confidence in Canada's investment industry.

Regulated entities should be aware that CIRO can now return funds to harmed investors, which may increase the perceived risk and impact of disciplinary proceedings. While this program provides a new avenue for investor recovery, investors can still pursue existing channels like firm complaints, OBSI, arbitration, and civil claims. The program includes eligibility criteria, governance controls, and oversight mechanisms to ensure transparent and consistent distribution of funds.

What to do next

Review CIRO's Disgorgement Distribution Program guidelines and eligibility criteria.
Understand how disgorgement orders will be processed and distributed to harmed investors.
Ensure compliance with any new procedural requirements related to disgorgement in disciplinary proceedings.

Penalties

Disgorgement is a monetary sanction imposed on wrongdoers to repay funds obtained from misconduct.

Source document (simplified)

CIRO Launches Disgorgement Distribution Program to return funds to harmed investors

March 19, 2026

Type: Media Release > General

Contact

Ariel Visconti Senior Corporate Communications and Public Affairs Specialist 416-526-8240 Email
Program strengthens deterrence and supports confidence in Canada’s investment industry

March 19, 2026 (Toronto, Ontario) – The Canadian Investment Regulatory Organization (CIRO) announced the upcoming launch of its Disgorgement Distribution Program. The Program builds on CIRO’s existing ability to seek disgorgement orders, following a finding of registrant misconduct. In certain cases, the Program will now enable CIRO to distribute funds collected pursuant to a disgorgement order to investors who have been financially harmed by registrant misconduct.

Disgorgement is a monetary sanction imposed by CIRO hearing panels which require a wrongdoer to repay funds, gains, or any other type of value obtained from their misconduct.

Coming into effect on April 1, 2026, the Disgorgement Distribution Program, one of CIRO’s strategic priorities, is a significant milestone to enhance investor protection, improve regulatory outcomes, promote fairness, and support confidence in Canada’s investment industry.

Previously, investors who suffered financial harm as a result of registrant misconduct could not receive payments through CIRO for losses, even when disgorgement was ordered in disciplinary proceedings. The Disgorgement Distribution Program advances investor protection by introducing a mechanism to distribute disgorged funds to investors who suffered direct financial losses, and aligns CIRO with other Canadian securities regulators that have implemented similar frameworks to return funds to harmed investors. Investors continue to rely on existing avenues such as firm-level complaints, the Ombudsman for Banking Services and Investments (OBSI), arbitration, and civil claims.

“CIRO’s Disgorgement Distribution Program is an important step forward in the protection of Canadian investors,” said Andrew Kriegler, President and CEO, CIRO. “By requiring individuals and firms to return gains obtained through misconduct disgorgement is an important deterrence tool, and through the development of the Program announced today we will be able to help harmed investors as well.”

The Disgorgement Distribution Program includes clear eligibility criteria, governance controls, and oversight mechanisms to ensure that any distributions are handled transparently, consistently, and in the best interests of harmed investors.

For more information about the Disgorgement Distribution Program, including eligibility criteria, processes and Frequently Asked Questions, please visit: Disgorgement Distribution.

About CIRO

The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

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March 19, 2026

Type: Media Release > General