What are the SROs searching for?
For one thing, every member must maintain adequate capital in accordance with the nature and volume of business it conducts. If it falls below this level, the SRO can require action to correct the deficiency or to suspend the member’s trading privileges. The SROs might also be looking to see that customers’ fully paid-for securities are kept apart.
The SROs also employ staff who investigate complaints and infractions. The stock exchanges and IIROC have the authority to prosecute individuals who are suspected of wrongdoing and to exact penalties in the form of fines or suspensions.