CIRO has launched a new disgorgement distribution program – a framework to return money collected from wrongdoers to investors who suffered direct financial harm. It is a practical step toward ensuring that enforcement outcomes translate into meaningful recovery for affected investors, rather than penalties that exist only on paper.
Disgorgement is an order requiring a wrongdoer to surrender money obtained through misconduct. Under CIRO’s new framework, eligible investors may apply to receive a distribution from those funds.
How the program works: After a misconduct finding, CIRO collects the disgorged funds, issues a notice, and invites eligible investors to apply. Claims are reviewed, and approved amounts are distributed to help offset losses, though distributions will not necessarily fully compensate every investor. More information is available on CIRO’s website.