Enforcement Notice - Decision - IN THE MATTER OF David Hayes - Settlement Accepted

TORONTO, July 7, 2014 /CNW/ - On June 17, 2014, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a Settlement Agreement, with sanctions, between IIROC staff and David Hayes.

Mr. Hayes admitted that he failed to know his client and accepted trading instructions from another client without obtaining authorization to do so.

Specifically, Mr. Hayes admitted to the following violations:

(a) 

From 2003 to November 2010, Mr. Hayes failed to know his client EM, contrary to IIROC Dealer Member Rule 1300.1 (a) (IDA Regulation 1300.1(a) prior to June 1, 2008.); and



(b) 

From February 2003 to November 2010, Mr. Hayes accepted trading instructions from client PM for client EM's RRSP account, without obtaining authorization from EM to do so, contrary to IIROC Dealer Member Rule 200.1(i) 3 (IDA Regulation 200.1(i)3 prior to June 1, 2008.)

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

(a) 

Payment of a fine in the amount of $20,000 for count 1;



(b) 

Payment of a fine in the amount of $5,000 for count 2; and



(c) 

A re-write of the CPH examination within 12 months of the date of acceptance of the Settlement Agreement.

Mr. Hayes also agreed to pay costs in the amount of $3,000.

The Settlement Agreement is available at
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=273141F12DD24A0297649A313B667202&Language=en
The Hearing Panel's decision 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. Hayes' conduct in September 2011.  The conduct occurred when he was a Registered Representative with the Mississauga branch of CIBC World Markets Inc., an IIROC-regulated firm, where Mr. Hayes is currently registered.

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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: Elsa Renzella, Vice President, Enforcement, 416 943-5877, erenzella@iiroc.ca; Media Contact: June Yee, Manager, Corporate Communications, 416 943-6921, jyee@iiroc.ca