IIROC announces disciplinary hearing for Carol Ann Zosiak and John Frederick Brighten

VANCOUVER, Nov. 10, 2011 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a disciplinary hearing for Carol Ann Zosiak and John Frederick Brighten.

The disciplinary hearing concerns allegations that Ms. Zosiak opened two corporate accounts without determining their beneficial owner, and facilitated trades in those accounts without properly questioning the legitimacy of the transactions. It is also alleged that Mr. Brighten, as the firm's Chief Compliance Officer, failed to properly supervise Ms. Zosiak in this matter.

Hearing Dates:  June 4-8, 2012, and June 11-15, 2012, at 10:00 am
Location:  

Morris J. Wosk Centre for Dialogue, Simon Fraser University
580 West Hastings Street, Executive Room 470
Vancouver, BC

The hearing is open to the public, unless the panel orders otherwise. The panel's decision will be made available at www.iiroc.ca.

Specifically, it is alleged that Ms. Zosiak:

  • Failed to determine the beneficial owner of two new corporate accounts, contrary to IDA Regulation 1300.1(a) (now IIROC Rule 1300.1(a)); and
  • Failed to perform her role as gatekeeper to the capital markets by facilitating transactions without making diligent inquiries about their legitimacy, even though the circumstances called for such inquiries, contrary to IDA By-law 29.1 (now IIROC Rule 29.1) and IDA Regulation 1300.1(a) (now IIROC Rule 1300.1(a)).

Specifically, it is alleged that, as the firm's Chief Compliance Officer, Mr. Brighten:

  • Failed to adequately supervise Ms. Zosiak regarding the opening and trading in two client accounts, and ensuring that diligent inquiries were made in circumstances that called for such inquiries, contrary to IDA By-laws 29.27 and 38 (now IIROC Rule 38), Regulation 1300.2(a) (now IIROC Rule 1300.2(a)) and Policy 2 (now IIROC Rule 2500).

The alleged violations occurred between October 2005 and June 2006, when Ms. Zosiak was a Registered Representative and Mr. Brighten was the Chief Compliance Officer at the Burrard Street, Vancouver branch of Global Securities Corporation, an IIROC-regulated firm. IIROC began its investigation into Ms. Zosiak's conduct in July 2009 and into Mr. Brighten's conduct in November 2010. Ms. Zosiak and Mr. Brighten continue to be registered at this branch of this firm.

* * *

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.

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.

 

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information:

Warren Funt
Vice President, Western Canada
604.331.4750
wfunt@iiroc.ca
          Elsa Renzella
Director, Enforcement Litigation
416.943.5877
erenzella@iiroc.ca


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.