Enforcement Notice Decision - IN THE MATTER OF Charles B. Floyd and James Gordon McDonald - Discipline Decision - Liability
CALGARY, Feb. 14, 2013 /CNW/ - Following a disciplinary hearing held from October 1-4, 2012 in Edmonton, Alberta, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), found that Charles B. Floyd made unsuitable recommendations and discretionary purchases in a client's account and that James Gordon McDonald failed to supervise the account.
The panel's decision dated January 22, 2013 is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=E1746D66C38F419E9F5F7810E8AF4C13&Language=en.
Specifically, the panel found that Mr. Floyd and Mr. McDonald committed the following violations:
|(a)||Between April and December 2008, Mr. Floyd acted contrary to IIROC Dealer Member Rule 1300.1 (q) by failing to ensure recommendations he made for a client were suitable for the client.|
|(b)||Between September and November 2008, Mr. Floyd acted contrary to IIROC Dealer Member Rule 1300.4 by using discretion with respect to purchases in a client account.|
|(c)||Between April and December 2008, Mr. McDonald acted contrary to IIROC Dealer Member Rule 1300.1 (p) and IIROC Dealer Member Rule 2500 by failing to adequately supervise a client account to ensure that holdings in the account were suitable for the client.|
A separate hearing will be held to determine the penalty to be imposed on Mr. Floyd and Mr. McDonald. The date will be made available at www.iiroc.ca.
Documents related to ongoing IIROC enforcement proceedings - including Reasons and Decisions of Hearing Panels - are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC formally initiated the investigation into Mr. Floyd's conduct in May 2009 and into Mr. McDonald's conduct in March 2009. The alleged violations occurred when they were Registered Representatives with the Edmonton branch of Union Securities Ltd., an IIROC-regulated firm. Mr. Floyd and Mr. McDonald are both Registered Representatives at Wolverton Securities Ltd., an IIROC-regulated firm.
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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.
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.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General NewsFor further information:
Vice President, Western Canada
Public Affairs Specialist