VANCOUVER, Feb. 2 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a Settlement
Agreement, which includes sanctions, between IIROC staff and Credit
Suisse Securities (Canada) Inc.
In this agreement, Credit Suisse admits that it violated the Universal Market Integrity
Rules (UMIR) by failing to comply with its trading supervisory
obligations. The firm admits that in certain cases between May 2007 and
October 2007, a monthly review of trading activity for possible
manipulation of security prices at the market's close was either not
conducted within a reasonable period or at all. Credit Suisse also
failed to properly scrutinize a particular client's Direct Market
Access (DMA) account which had been generating "red flag warnings" in
earlier reviews for possible artificial pricing.
Credit Suisse has agreed to pay a $150,000 fine and $15,000 in costs.
In particular, Credit Suisse admits that it violated UMIR 7.1(1) and UMIR Policy 7.1 by failing to:
Conduct artificial pricing reviews within a reasonable period of time
for the months of May 2007, June 2007, and July 2007;
Conduct an artificial pricing review for October 2007; and
Question a particular client until December 27, 2007, despite the fact
that the firm's artificial pricing reviews for August, September and
November 2007 generated red flag warnings that a particular Direct
Market Access (DMA) account was using algorithms to execute buy orders
that appeared to create artificial prices.
In accepting the Settlement Agreement, the IIROC Hearing Panel said it
was satisfied that the deficiencies in Credit Suisse's trade
supervision for artificial pricing had been remedied.
IIROC began its formal investigation into the conduct of Credit Suisse
Securities (Canada) Inc. on November 13, 2008. Credit Suisse is
currently 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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