1. Explanation of the functioning of the regulatory or industry body: 1. Key function IIROC The Investment Industry Regulatory Organization in Canada (IIROC), oversees and enforces rules regarding...

1. Explanation of the functioning of the regulatory or industry body: 
1. Key function 
IIROC 
The Investment Industry Regulatory Organization in Canada (IIROC), oversees and enforces rules regarding investment activities in the Canadian te
itory. Approximately 175 Canadian investment firms and more than 30,000 registered individuals (Investment Industry Regulatory Organization (IIROC), n.d.). Their principles functions are Register, training, monitor, trading supervision and advising to ensure that everybody is trading in a fair industry (Investment Industry Regulatory Organization (IIROC), n.d.). 
FAC 
FCA is responsible for the UK financial market, creating a safety environment where the economy can interact fairly. FAC protects consumers, financial market and competitors (Kenton, W., 2020). 
2. Mission/Vision 
IIROC 
IIROC (Investment Industry Regulatory Organization (IIROC), n.d.). shows that their vision is to establish how the self-regulatory model operates the public interest, by: 
· Inspiring faith and preventing illegal behavior by having and using strong and appropriate tools,  
· Efficiency during the process of securities regulations in Canada. 
· Being recognize as a trustworthy, reliable, and valued partner by their stakeholders,  
· Being a primary securities regulator,  
· Attracts and maintains high-quality workers  
 FAC 
The mission of FAC is to regulate the financial services in the UK adding value to the users. Their Mission explains what and why they prioritize. It describes the structure they use to make decisions, the reasoning behind their work and how they decide the best tools for the job (FCA, 2016). 
3. Principles/Rules including examples 
IIROC 
All rules that are included in their manual of IIROC rules are important, but they classify three of them as principal rules:  
· Rule 1300: Exemptive power of IIROC. The board reserve the power to exempt a dealer member from any IIROC requirement, taking into account specifics circumstances. For example, if the board considers that the act would not be prejudice against the interest of the public, Dealer Members, or their clients, they can exempt a dealer member for a sanction (IIROC, n.d.). 
· Rule 1400: Standards of conduct. Specify the general standards of conduct that a regulated person must practice and follow. For instance, the member must pursue the benefit of the public instead of their benefit (IIROC, n.d.).  
· Rule 1500: Managing significant areas of risk. There should be or assigned an appropriate executive to be responsible to manage areas of risk. For example, the executive responsible for the risk area must review and approve any IIROC procedures to ensure that the rules are being followed (IIROC, n.d.). 
FAC 
The principles rules of FAC (FCA, 2016) are: 
· Integrity: Their actions must be with honesty.   
· Skill, care and diligence 
· Management and control: Manage their responsibilities considering the risks.  
· Financial prudence 
· Market conduct: For instance, they must monitor that the market conducts are accomplish as expected.  
· Customers interests: The customers interest must be pursued.    
· Communications with clients: Members must establish a clear and fair continue communication with the clients regarding the products.  
· Conflicts of interest 
· Customers: relationships of trust 
· Clients’ assets 
· Relations with regulators 
2.  
3. Description of who is regulated 
IIROC 
IIROC regulates all investment dealers and trading activity, debt and equity marketplace in Canada. Before investment dealer can operation in the Canadian te
itory, they must be accepted for a membership with a self-regulatory organization (Investment Industry Regulatory Organization (IIROC), n.d.). 
 
FAC 
FAC regulate the financial market in the United Kingdom (FCA, 2016).  
4. Description of how the regulated are regulated: 
1. Critical regulations 
IIROC 
The Investment Industry Regulatory Organization of Canada (IIROC) is a non- profit and self- governing body which was established through merger of IDA and Market Regulation Services Inc. in June XXXXXXXXXXForex Trading, 2019). The organization is having quasi- judicial power which control and regulate the Canadian trading and securities market. The organization also issues compliance priorities report which assist to define the compliance programs, inherent controls and other aspects. 
FCA 
The body is responsible for operation of UK financial markets, and it ensure that all the trading in securities is happening in fair and transparent manner so that the interest of customers and investors can be saved, and competition will be increased in market. The body is established under U.K. Treasury and parliament. (Kenton, Financial Conduct Authority (UK) (FCA), 2020). 
2. Regulation process (eg IIROC think of registration, Disclosure & enforcement from Module 1)) 
IIROC 
The one of the major examples of regulation process followed by IIROC in reference of compliance review in which trade- desk procedures are checked and verified. Under the review the regulator checks that the trade desk procedures followed by the entities are complying of Universal Market Integrity Rules (UMIR) and provincial securities laws (Khan, XXXXXXXXXXThe regulator has also launched upgraded market surveillance system in year 2019 with the help of NASDAQ and in year 2020 it has released proposal for improvement in self- regulations. 
FCA 
The regulator has main three operational objectives such as protection of interest of consumers, increase in honesty and transparency in UK financial markets and health competition between financial service providers. The regulator’s objectives have been established under Financial Services and Market, 2000 and has been improved by Financial Services Act 2012. Another regulation process of the organization is to guarantee that the financial division in managed in efficient manner and effective controls are in place (Kenton, 2020). 
3. Examples of how the process works 
IIROC 
The regulator set the rules related to investment and regulatory standards and also enforce such rules. It also screens all advisors registered under it to ensure that all the advisors are properly trained, educated, proper background checks etc. It also reviews financial compliance and ensure that all the firms are having minimum required capital. 
FCA 
One classical example of process followed by the regulator in reference to issuing fines against the firms which are
eaching the laws. The regulator is also making public announcement regarding the defaults made by the firms, disciplinary actions taken against defaulting firms etc. which promote other firms to be more compliance and to work in transparent manner (Kenton, 2020).