TORONTO, July 26, 2012 /CNW/ - Following a hearing on July 4, 2012, a
Hearing Panel of the Investment Industry Regulatory Organization of
Canada (IIROC) accepted a Settlement Agreement, with sanctions, between
IIROC staff and Michael Reid Ast.
Mr. Ast admitted that he engaged in discretionary trading over two
decades in certain client accounts with clients' consent but without
obtaining the necessary prior written authorization from the clients
and his firm.
Specifically, Mr. Ast admitted to the following violation:
Between 1991 and 2009 the Respondent engaged in discretionary trading in
the accounts of 27 clients without first having the accounts approved
and accepted as discretionary accounts, contrary to IIROC Dealer Member
Rule 1300.4 (IDA Regulation 1300.4 prior to June 1, 2008).
Pursuant to the Settlement Agreement, Mr. Ast agreed to the following
A fine to IIROC in the sum of $20,000; and
A period of suspension from registration in any category with IIROC for
Mr. Ast also agreed to pay costs in the amount of $5,000.
The Settlement Agreement and the Hearing Panel's decision is available
Documents related to ongoing IIROC enforcement proceedings - including
Reasons and Decisions of Hearing Panels - are posted on the IIROC
website as they become available. Click here to search and access all
IIROC enforcement documents.
IIROC formally initiated the investigation into the Mr. Ast's conduct in
October 2010. The violations occurred when he was a Registered
Representative with the Toronto Brookfield Place Branch of CIBC Wood
Gundy, an IIROC-regulated firm. Mr. Ast continues to be a Registered
Representative with the Toronto Brookfield Place Branch.
* * *
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.
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, permanent bars,
expulsion from membership, or termination of rights and privileges 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.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Enforcement
Director, Public Affairs