CALGARY, Nov. 5, 2013 /CNW/ - On October 17, 2013, a Hearing Panel of
the Investment Industry Regulatory Organization of Canada (IIROC)
accepted a Settlement Agreement, with sanctions, between IIROC staff
and Douglas Charles Allan.
Mr. Allan admitted that he failed in his know your client obligations
and failed to ensure that recommendations were suitable for his client,
who is a senior. The holdings in his client's account declined in value
by 28% during a time period when the S&P/TSX Capped Composite Total
Return Index increased by 7.7%.
Specifically, Mr. Allan admitted to the following violations:
Between February 2008 and September 2011, Mr. Allan failed to use due
diligence to learn and remain informed of the essential facts relative
to his client contrary to Dealer Member Rule 1300.1(a) (Investment
Dealer Association by-law 1300.1(a) prior to June 1, 2008); and
Between February 2008 and September 2011, Mr. Allan made unsuitable
recommendations in the account of his client contrary to Dealer Member
Rule 1300.1(q) (Investment Dealer Association by-law 1300.1 (q) prior
to June 1, 2008).
Pursuant to the Settlement Agreement, Mr. Allan agreed to the following
A fine of $60,000; and
Re-write the Conduct and Practices Handbook exam.
Mr. Allan also agreed to pay costs in the amount of $10,000.
The Settlement Agreement is available at:
and 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. Allan's conduct in
January 2012. The violations occurred when he was a Registered
Representative and President with the Red Deer branch of Retire First
Ltd. Mr. Allan is still registered in the same capacity at Retire First
* * *
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 1877442-4322.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Western Canada
Senior Media and Public Affairs Specialist