Enforcement Notice - Decision - IN THE MATTER OF Scotia Capital Inc. - Settlement Accepted

TORONTO, Aug. 11, 2015 /CNW/ - On August 5, 2015, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Scotia Capital Inc. ("Scotia Capital").

Scotia Capital admitted that between September 14, 2005 and June 2013, DWM Securities Inc. (subsequently amalgamated with Scotia Capital) failed to establish and maintain a system of controls and supervision that was adequate to ensure that certain clients were qualified to purchase investment funds offered pursuant to prospectus exemptions, contrary to IIROC Dealer Member Rules 38.1, 1300.1(a) and 2500(II) (formerly IDA By-Law 29.27(a), Regulation 1300.1(a) and Policy 2).

Pursuant to the Settlement Agreement, Scotia Capital agreed to the following terms of settlement:

(a)

A fine of $500,000;



(b)

Scotia Capital will report on the execution of the remediation plan (as set out in paragraph 28 of the Settlement Agreement) to IIROC's Vice-President of Enforcement by no later than October 30, 2015, and as thereafter required by the Vice-President of Enforcement to ensure the remediation plan is completed satisfactorily; and



(c)

The internal fines imposed (as set out in paragraph 31 of the Settlement Agreement) will be donated by Scotia Capital to charity.

 

The Settlement Agreement is available at:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=15084A395B1D4090836793096B474203&Language=en.

and 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.

Scotia Capital is an IIROC-regulated firm.

*  *  *

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

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http://www.iiroc.ca

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