IIROC announces date for penalty hearing for Magna Partners Ltd.

TORONTO, Sept. 8 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada ("IIROC") has scheduled a penalty hearing date in the matter of Magna Partners Ltd.

The hearing concerns a statement of allegations, agreed to by Magna Partners and IIROC staff, in which Magna Partners admitted to two violations of best price obligation rules. Magna Partners and IIROC staff have not agreed on the appropriate penalty for the misconduct. The agreement was announced in an August, 6, 2010 news release.

The penalty hearing is open to the public, unless the panel orders otherwise.

Penalty Hearing:	10:00 a.m. October 19, 2010
Location:	JPR Meeting rooms, hearing room C
	390 Bay Street, Toronto, Ontario

The agreed-to violations are that between October 2008 and June 2010, while operating as an IIROC-regulated firm, Magna:

(a)	failed to make reasonable efforts to ensure that orders were executed at the best price, contrary to Universal Market Integrity Rules 5.2;
(b)	failed to have adequate policies and procedures in place in order to ensure reasonable efforts were made to execute orders at the best price, contrary to UMIR 7.1.

Under UMIR 5.2, the best price obligation is a general duty owed to the market to ensure that better priced orders are not bypassed and traded through. Its objective is to ensure fairness to all market participants and promote efficiency and transparency while maintaining investor confidence in the market. UMIR Policy 5.2 requires IIROC-regulated firms adopt policies and procedures that will ensure compliance with their best price obligations and that these policies are updated to reflect changes in the trading environment and market structure.

IIROC began investigating the conduct of Magna Partners on July 13, 2009. Magna Partners is an IIROC-regulated firm, although its membership is currently suspended until a qualified Chief Compliance Officer is approved by IIROC, pursuant to a Hearing Panel order dated August 13, 2010.

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
[e-mail]