MONTRÉAL, 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 Penson
Financial Services Canada Inc. (Penson).
With this agreement, Penson has admitted that it failed to establish and maintain adequate
internal controls, and that it failed to ensure employees understood
their responsibilities to conduct certain reviews.
The penalty against Penson includes a $225,000 fine and $20,000 in
Specifically, Penson has admitted to:
Violating IDA By-law 17.2A and IIROC Rule 17.2A by:
(i) Failing to establish and/or maintain adequate internal controls
related to certain accounts of Evergreen Capital Partners Inc.; and
(ii) Failing to establish appropriate controls and procedures to
ensure the proper reporting of margin required on Introducing Brokers'
Violating IDA By-law 29.27 and IIROC Rule 29.27 by failing to ensure
that each partner, director, officer, registered representative,
employee and agent of the firm understood their responsibilities
relating to the review of all Introducing Brokers' inventory accounts
and accumulation accounts.
The violations occurred from March to October 2008. IIROC began its
investigation into the firm's conduct in November 2008. Penson
Financial Services Inc. is an IIROC-regulated 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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