Enforcement Notice - Decision - IN THE MATTER OF Daniel Desautels - Settlement Accepted

MONTRÉAL, May 10, 2017 /CNW/ - On April 10, 2017, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Daniel Desautels.

Mr. Desautels admitted that he failed to use due diligence to learn all the essential facts relative to one of his clients and to every order and account accepted, and executed transactions and a transfer of funds in the accounts of one of his clients based on instructions received from an individual who was not authorized to give instructions on the account.

Specifically, Mr. Desautels admitted to the following violations:

a) 

Between January 27, 2009 and March 22, 2011, while a Registered Representative with Industrial Alliance Securities Inc., Mr. Desautels failed to use due diligence to learn all the essential facts relative to one of his clients and to every order and account accepted, contrary to IIROC Dealer Member Rule 1300.1(a); and



b) 

Between January 27, 2009 and March 22, 2011, while a Registered Representative with Industrial Alliance Securities Inc., Mr. Desautels executed trades in the accounts of one of his clients, based on instructions received from an individual who was not authorized to give instructions on the account and, in so doing, failed to observe high standards of ethics and conduct and engaged in conduct unbecoming and detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1; and



c) 

Between January 27, 2009 and March 22, 2011, while a Registered Representative with Industrial Alliance Securities Inc., Mr. Desautels executed a transfer of funds from the accounts of one of his clients to an account with another financial institution, based on instructions received from an individual who was not authorized to give instructions on the account and, in so doing, failed to observe high standards of ethics and conduct and engaged in conduct unbecoming and detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1.

Pursuant to the Settlement Agreement, Mr. Desautels agreed to the following penalties:

a)

a fine in the amount of $20,000;



b)

disgorgement of the commissions earned in connection with the contraventions, in the amount of $2,084; and



c)

the obligation to pass the Conduct and Practices Handbook examination within 12 months following acceptance of this settlement agreement by the Hearing Panel.

Mr. Desautels also agreed to pay IIROC costs in the amount of $5,000.

Also, Mr. Desautels agreed to make an initial payment equal to 50% of the aggregate financial penalty imposed on him by IIROC on the date of acceptance of the Settlement Agreement by the Hearing Panel.

The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=577CFB7037004F72AE471F2C997810A7&Language=en

The Hearing Panel's decision is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=70CAC2F6238E4C82B1D8167042AC45D4&Language=en

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 Mr. Desautels' conduct in August 2014. The conduct occurred while Mr. Desautels was a Registered Representative at the Repentigny sub-branch of Industrial Alliance Securities Inc. (IAS), an IIROC-regulated firm. Mr. Desautels is still employed as a Registered Representative with IAS.

*  *  *

IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian 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: Enforcement Contact: Claudyne Bienvenu, Vice-President, Québec, (514) 878-2854, cbienvenu@iiroc.ca; Media Contact: Karen Archer, Manager, Media Relations, (416) 865-3046, karcher@iiroc.ca

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