TORONTO, Feb. 22, 2017 /CNW/ - On February 14, 2017, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, entered into between IIROC staff and Scotia Capital Inc.
Scotia Capital admitted that it failed to properly supervise the conduct of Krishna Sammy.
Specifically, Scotia Capital admitted to the following violation:
Between January 2009 and December 2011, Scotia Capital failed to adequately supervise the activities of Krishna Sammy, a portfolio manager at DWM, to ensure compliance with the Dealer Member Rules, contrary to IIROC Dealer Member Rules 38.1, 1300.2, 1300.15 and 2500.
Pursuant to the Settlement Agreement, Scotia Capital agreed to the following penalty:
a fine in the amount of $175,000.
Scotia Capital also agreed to pay costs in the amount of $10,000.
The Settlement Agreement is available at: http://www.iiroc.ca/Documents/2017/be95f8e5-8e74-41d1-90bf-d363868bfd3b_en.pdf.
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 formally initiated the investigation into Scotia Capital's conduct in June 2013.
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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
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