Integrated Market Enforcement Teams

Maintaining investor confidence in Canada’s publicly-traded companies and capital markets is a crucial element of sustained economic growth. Investor confidence in Canada’s capital markets has suffered following corporate scandals in the United States, such as Enron and WorldCom in 2001-2002.

Ensuring individuals and companies that violate the public trust face punishment consistent with the seriousness of the violation is an important element of efforts to bolster investor confidence.

The Integrated Market Enforcement Teams (IMETs) initiative strengthens the law enforcement community’s ability to detect, investigate and deter capital markets fraud by focusing resources on the investigation and prosecution of the most serious corporate frauds and market illegalities. By sending the message that those who commit serious capital markets fraud offences will be brought to justice in an effective and timely fashion, this initiative promotes compliance with the law in the corporate community and assures investors that Canada’s markets are safe and secure.

In accordance with the funding for the initiative provided in the Government of Canada’s 2003 Budget, the RCMP and federal partners received up to $30 million a year over five years to create integrated enforcement teams composed of police, lawyers and other investigative experts in Canada’s four major centers: Toronto, Vancouver, Montreal and Calgary. The teams are jointly managed by the Royal Canadian Mounted Police, Justice Canada and partner departments and agencies, and work closely with securities regulators and other federal and provincial authorities – building on the RCMP’s existing partnerships with these organizations.

Police officers chosen for IMET work are highly qualified financial investigators. The RCMP ensures that these investigators receive additional markets-related training, are kept abreast of the latest techniques and legal developments in their field, and are dedicated to the teams for specified periods of time. Investigators receive ongoing advice from legal advisors from the Federal Prosecution Service.

Nine IMETs are operational in Canada. Three IMETs are in Toronto, with two each located in Vancouver, Montreal and Calgary. These teams are supported by a branch in Ottawa. The IMET initiative has a Quick Start capability, allowing the teams to respond swiftly to major corporate frauds and market irregularities anywhere in Canada. Effective management and accountability mechanisms are key features of the initiative.

Frequently Asked Questions