VANCOUVER, May 19 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a settlement
agreement, with sanctions, between IIROC staff and Konstantinos
With this agreement, Mr. Arapis admits that he had clients participate
in an off-book transaction and that he failed to ensure that certain
trades were within the bounds of good business practice.
Mr. Arapis' penalty includes a $45,000 fine and $5,000 in costs. It also
requires Mr. Arapis to re-write the Options Supervisors Course,
followed by a 12-month period of close supervision for all options
trading, with monthly reports to be filed with IIROC. During this
period, he is prohibited from trading or advising in Level 4 Option
accounts, which are accounts that have been approved for certain
trading activities, including the right to buy and sell uncovered
options. He was also given a six-month suspension from acting as a
Specifically, Mr. Arapis admits to:
Soliciting clients for a private placement of shares in a company in
which he had an interest, contrary to IIROC Rule 29.1;
Effecting this transaction off-book and without his firm's knowledge,
and receiving remuneration directly from the company, contrary to IIROC
Rule 18.15; and
Effecting 111 option transactions in 23 client accounts which were
outside the accounts' approved option level, contrary to IIROC Rule 1300.1(o).
The solicitation for the private placement occurred between June 2005
and November 2005. The option transactions in the client accounts
occurred between May 14, 2008 and October 31, 2008.
IIROC began its investigation into Mr. Arapis' conduct in March 2009.
The violations occurred when he was a Registered Representative with
Saskatoon branches of Assante Capital Management Inc. and Raymond James
Ltd., both IIROC-regulated firms. Mr. Arapis is currently registered
with a Saskatoon branch of Canaccord Genuity Corp., an IIROC-regulated
* * *
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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