VANCOUVER, Nov. 10, 2011 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of
Canada (IIROC) has accepted a Settlement Agreement, with sanctions,
between IIROC staff and Douglas Ralph Garrod.
In this agreement , Mr. Garrod admits to failing to reasonably supervise certain staff
members with respect to two client accounts.
Pursuant to the agreement, Mr. Garrod has agreed to a penalty of a
$65,000 fine and $5,000 in costs.
Specifically, Mr. Garrod has admitted that he:
Failed to reasonably supervise Registered Representative Carol Ann
Zosiak and Chief Compliance Officer John Brighten with respect to two
client accounts to ensure that Ms. Zosiak performed sufficient due
diligence on the beneficial owners of these two accounts and the
trading within those accounts, 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 violations occurred between October 2005 and June 2006, while Mr.
Garrod was the Ultimate Designated Person (UDP) with the Vancouver
branch of Global Securities Inc., an IIROC-regulated firm. IIROC began
the investigation into Mr. Garrod's conduct in January 2011. He is
still the UDP with the same 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
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