Enforcement Notice - Decision - IN THE MATTER OF Mackie Research Capital Corporation - Settlement Accepted

TORONTO, July 21, 2015 /CNW/ - On July 8, 2015, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Mackie Research Capital Corporation.

Mackie Research Capital Corporation admitted that it failed to disclose a conflict of interest when selling certain securities, it failed to report certain information in an accurate or timely way through the National Registration Database, and it failed to properly supervise the activities of a Registered Representative.

Specifically, Mackie Research Capital Corporation admitted to the following violations:

(a)       

Between July 1, 2012 and January 15, 2013, Mackie recommended and accepted orders for investment in certain investment products without disclosing a conflict arising from a personal interest held by a Mackie employee in those products, contrary to Dealer Member Rule 42;



(b)       

For approximately one year until September 2013, Mackie failed to report certain information in an accurate or timely way through the National Registration Database ("NRD"), contrary to Dealer Member Rule 31 00; and



(c)      

Between June 2007 and April 2010, Mackie failed to fully and properly supervise the activities of its Registered Representatives, Harry Richard Newman, contrary to IIROC Dealer Member Rules 38.4 and 2500 (previously Investment Dealers Association of Canada ("IDA") By-law No. 38 and Policy No. 2).

Pursuant to the Settlement Agreement, Mackie Research Capital Corporation agreed to the following penalty:

(a)       

A fine of $130,000.

Mackie Research Capital Corporation also agreed to pay costs in the amount of $20,000.

The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=10C2B092ECC64D2395567E840C866E73&Language=en        

The Hearing Panel's decision is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=BC1BE19F3FB142F5B12BC2367BE4053A&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 Mackie Research Capital Corporation's conduct in April 2013.

*  *  *

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: 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

RELATED LINKS
http://www.iiroc.ca

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