Enforcement Notice - IN THE MATTER OF CTI Capital Securities Inc. - Settlement Accepted

MONTREAL, May 26, 2014 /CNW/ - On April 28, 2014, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC Staff and CTI Capital Securities Inc. (CTI Capital).

CTI Capital admitted that it failed to use due diligence to ensure that the acceptance of orders in the PRO accounts of Milad Nassif, an investment advisor, was within the bounds of good business practice.

Specifically, CTI Capital admitted to the following violation:

Between September 2010 and December 2011, CTI Capital failed to use due diligence to ensure that the acceptance of orders in the account of Milad Nassif, an investment advisor, and in those of his wife and son, was within the bounds of good business practice, contrary to IIROC Rules 1300.1(o) and 2500.1.C(4).

Pursuant to the Settlement Agreement, Mr. Smith agreed to the following penalty:

(a)  Payment of a $25,000 fine.

CTI Capital also agreed to pay IIROC costs in the amount of $5,000.

The Settlement Agreement is available at
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=7C1BAEFF3A064949829FEE127E228D03&Language=en
and the Hearing Panel's decision dated April 28, 2014, is available at
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=90557CB4F4F5440191DA7BAB2D4B8820&Language=en.

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 CTI Capital's conduct in May 2013.  The conduct occurred when CTI Capital was an IIROC-regulated firm. CTI Capital is still 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, permanent bars, expulsion from membership, or termination of rights and privileges 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 News

For further information: Enforcement Contact: Carmen Crépin, Vice President, Quebec, 514 878-2854, ccrepin@iiroc.ca; Media Contact: Karen Archer, Senior Media and Public Affairs Specialist, 416 865-3046, karcher@iiroc.ca