IIROC announces settlement agreement with Michael Jeffrey Bereskin

TORONTO, Sept. 27 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a Settlement Agreement, including sanctions, between IIROC staff and Michael Jeffrey Bereskin.

In the settlement agreement, Mr. Bereskin admitted that he failed to meet his "know your client" obligations in handling a particular account, contrary to IDA Regulation 1300.1(a) (now IIROC Rule 1300.1(a)). Mr. Bereskin has agreed to pay a $10,000 fine.

Specifically, Mr. Bereskin violated the 'know your client' rule by opening a trading account for a family trust, then accepting trading instructions from one trustee only and not two as set out in the trust agreement. In its Decision and Reasons issued on August 27, 2010, the Hearing Panel said, "it is clear to this panel that the due diligence regarding 'know your client' was inadequate."

IIROC began investigation Mr. Bereskin's conduct on August 20, 2009. The violation occurred when he was a registered representative with the Toronto branch of Blackmont Capital Inc. (now Macquarie Private Wealth Inc.) and First Associates Investments Inc., Blackmont's predecessor firm. Mr. Bereskin is currently a registered representative with the Toronto (First Canadian Place) branch of BMO Nesbitt Burns Inc., an IIROC-regulated firm.

IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions and permanent bans or terminations for individuals and firms.

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1.877.442.4322.

IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

For further information: Jeff Kehoe, Vice President, Enforcement, 416.943.6996, [email protected]; Elsa Renzella, Director, Enforcement Litigation, 416.943-5877, [email protected]