Enforcement Notice - Decision - IN THE MATTER OF D&D Securities Inc. (now known as Dominick Inc.) and Patrick Lilly - Settlement Accepted

TORONTO, Sept. 22, 2016 /CNW/ - On August 31, 2016, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and D&D Securities Inc. (now known as Dominick Inc.) ("D&D"), and Patrick Lilly.

D&D and Mr. Lilly admitted failure to ensure compliance with certain regulatory requirements and Mr. Lilly's failure to ensure that D&D's representations to IIROC were fulfilled.

Specifically, D&D and Mr. Lilly admitted to the following violations:

(a) 

From 2011 to 2014, D&D and Mr. Lilly failed to ensure compliance with regulatory requirements with respect to (a) avoiding misuse of confidential information, (b) identifying, managing, and disclosing conflicts of interest, potential conflict of interest, and Outside Business Activities, and (c) supervising retail accounts, contrary to IIROC Dealer Members Rules 38, 18.14, and 2500 ; and

(b) 

From January 2012 to May 2015, Mr. Lilly engaged in business conduct that is unbecoming a registrant by failing to ensure that D&D fulfill representations made to IIROC that it would develop and improve its sales compliance program, contrary to IIROC Dealer Member Rule 29.1.

 

Pursuant to the Settlement Agreement, D&D and Mr. Lilly agreed to the following penalty:

(a) 

D&D and Mr. Lilly shall complete the Remedial Steps (described in paragraph 52 of the Settlement Agreement) by October 30, 2016, and shall report by that date on completion and execution to IIROC's Vice-President of Enforcement, and as thereafter required by the Vice-President of Enforcement to ensure that the Remedial Steps are completed satisfactorily;



(b) 

Mr. Lilly shall successfully re-write the CCO examination by October 30, 2016;



(c) 

D&D shall pay a fine of $15,000; and



(d) 

Mr. Lilly shall pay a fine in the amount of $7,500.




D&D also agreed to pay costs in the amount of $5,000.

 

The Settlement Agreement is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=47D5D62559724879A70BF6D2AB16443E&Language=en

The Hearing Panel's decision will be made available at www.iiroc.ca.

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 first formally initiated the investigation into D&D and Mr. Lilly's conduct in March 2012.  D&D is an IIROC-regulated firm which is now known as Dominick Inc.  The conduct occurred while Mr. Lilly was the Ultimate Designated Person and Chief Compliance Officer of D&D.   Mr. Lilly continues to be registered in the same capacities at D&D.

*  *  *

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: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, erenzella@iiroc.ca; Media Contact: Karen Archer, Manager, Media Relations, 416 865-3046, karcher@iiroc.ca

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